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Franchise Matters Blog
Should You Make Financial Performance Representations to Potential Franchisees?
Before deciding whether to make financial performance representations, franchisors should consider these things.
How Do You Determine the Initial Investment for the FDD?
Item 7 of the Franchise Disclosure Document (FDD) requires franchisors to set out in a prescribed tabular format a franchisee’s estimated initial investment – i.e., all the expenses required by the franchise agreement and all other costs necessary for a franchisee to commence business. These costs go beyond the fees in Item 5-Initial Franchise Fees […]
What Franchise Model Should You Use?
There are 4 main types of franchise models for business format franchising: Single Unit, Multi-Unit Development, Conversion, and Master Franchise. We discuss the benefits of each for a prospective franchisor.