Tips when looking for a good franchise
I’ve been asked “How to spot a good franchise” 100’s of times in my 20 years in franchising. The answer has never changed in my mind… it depends…
Check the Financial Performance
You can certainly determine the ‘health’ of any franchise company by reviewing the legal disclosures in its Franchise Disclosure Document or FDD. After verifying you meet basic franchisee criteria through a questionnaire, request for consideration or even an application, you will typically be provided with the FDD by the franchisor. This important document contains an array of information about the company such as it’s officers and directors, litigation history, bankruptcy and audited financial statements to name just a few.
Most franchisors will have a structured process for […]