Franchise Blog

Franchising only works successfully when every single chain or franchise is in line with all the others, providing consumers with the same reliable services or products they are used to. However being consistent isn’t always that easy for the big chain or franchise. There are small design specifics that might work well in one place, […]

During the meetings with your franchisor, you will hear them make promises and you are likely to verbally agree to things. You’ll also read the FDD and the franchising agreement and will have to sign parts of both. All these experiences culminate into the end result of owning a franchise, but later down the line, […]

There’s a lot of debate on what to do if an FDD doesn’t present franchisees with the financial performance representation or if they do and it’s something small. If the franchisor you’re working with doesn’t provide you with any information on it, another good source to go to is the earning potential information for the […]

While all parts of the FDD are important to not only read, but to understand, you’ll want to pay particular attention to these sections:   Item 7: Because it talks about how much the business will cost and the initial investment, it should be 100% understood, especially that these costs are only estimates and not […]

The Cover Pages of the FDD Every formal document will always start out with a cover page. On this (these) page(s) you should look forward to this information: Summary of the franchise’s offerings and initial investment required. State that no government agency has verified the information in the document. Remind the franchisee to read the […]

In short, the information you’ll find in the FDD includes: A directory of franchisees in the system Audited financial statements Company’s key staff and their qualifications Company-owned locations, how many are open, how many have closed Franchisor’s financial history, including any bankruptcies or litigations Information on system-wide growth Information on the franchise Legal responsibilities as […]

You should feel some security in knowing the law requires franchisors to inform franchisees about the systems they run in their companies. The information that the law requires franchisors to share should be found in the FDD and if it’s not, back away from the company because they are not in compliance with the law. […]

When you’re getting into franchising, you should know the term Franchise Disclosure Document (FDD) indefinitely. You should always receive an FDD when you sign up with a franchisor for information and you need to make sure that you understand the FDD because it holds all the important information you will need to know about the […]

Once you have gone through the traditional methods of financing the next thing you will want to consider is going with an angel investor. An angel investor is a person or group of people that offer funds for the startup of your business and in turn they have a direct role with your business.   […]

A business plan is essential for the success of your franchise. No matter what route you are taking for borrowing money or simply getting through the approval process for your franchise, you will need to have this information.   The First Step to a Franchise Financial Plan When creating your business plan, make sure you […]

Franchising drives what we will call the entrepreneurial plane, taking businesses to a higher level, faster than ever. You will have a hard time driving down any city street, even in small towns, without passing at least one franchise. Franchising is so massive, that it is a part of just about any business line in […]

The International Franchise Association (IFA) hasn’t been publishing numbers of franchise success for years. It’s easy to falsify number and statistics specifically. You should be wary of any business or franchisor who swears by numbers or claims success based on statistics.   What is a Brand and What Does it Do in Franchising? It’s key […]

To put it as simply as possible: the franchisor is the owner of the brand or company. They are able to grant others the ability to use their name and reputation in order to open their own businesses with their trademarked service, look, and products. A franchisee is the individual who seeks license with the […]

Every franchisor-franchisee relationship is different, even within the same company or brand name. The relationship will be specific between you and the franchisor and set, even starting from the very first time you make contact. Then from the personal level of franchisor-franchisee, there are the contract and business related relationships. Franchisor-Franchisee relationships come in three […]

While all the books, blogs, and articles in the world can tell you what to expect, what business franchisors will give you as a business franchisee, only you will be able to make the decision for yourself. It’s a personal decision based on personal questions and self-evaluation. While you might face obstacles based on your […]

There are a lot of myths about franchising and business ownership. You should always assess what is fact and what is fiction when you approach any situation. That includes the statement, “You are your own boss”. While it’s true that business franchisees run their own store, you are still subject to the franchisor. You will […]

Not everyone is cut out to run a franchise. Those with more passive business aspirations are some of the few that would not do so well running their own business, but there is more to it than that. It’s always important to make a self-assessment before you make any large purchases, investments, or changes in […]

Few brands in the world of quick-service dining have the same nostalgic pull as Sbarro. For millions of travelers, shoppers, and pizza lovers, the name instantly evokes memories of a bustling mall food court or airport terminal filled with the aroma of freshly baked New York-style pizza. Over the past six decades, Sbarro has become one of the […]

Franchising is one of the most powerful and proven pathways to entrepreneurship. With lower failure rates than independent startups and the benefit of an established brand, many individuals explore franchising as a way to own a business with support, structure, and scalability. But not all franchise models are created equal. With thousands of options across […]

A neighborhood hangout from Oregon is opening in Fort Worth: Called The Point Pub and Grill, it’s a casual bar and restaurant opening in the former Wicked Wing Pub space in north Fort Worth at 5636 N. Tarrant Pkwy., inside Parkwood Plaza, celebrating its grand opening on November 7. There is no shortage of restaurants […]