Buyer: Business Minded (5)
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Vital Franchise Statistics
Posted by Franchise Grade Team April 18, 2016
From time to time we’ll publish some important Statistics from Franchisegrade.com that we feel are pertinent to franchisors, franchisees and other participants in the franchise industry.
Read moreFranchisor Franchisee Litigation: Perception versus Reality
Posted by Franchise Grade Team April 4, 2016
When considering a franchise opportunity, one of the most important items, a prospective franchisee should review is the disclosed litigation between a franchisor and its franchisees. Presented in Item 3 of the Franchise Disclosure Document, this component of the due diligence process has been recommended by franchise attorneys and franchise industry professionals for countless years. There is little doubt that the amount and type of litigation a franchisor disclosed in their FDD can provide insight into the state and quality of franchise relations in a franchise system. However, what it doesn’t reveal is the amount of litigation that’s avoided due to a franchisor and franchisee amicably resolving their differences.
Read moreIt’s Time to Know Just How Marketable Your FDD Is
Posted by Franchise Grade Team March 11, 2016
Using the term marketable to describe a Franchise Disclosure Document might appear to be a misnomer, however, when one considers the relevance of an FDD it may be acceptable to use the term. This is because the FDD not only fulfills a franchise regulatory requirement but also presents a profile and performance summary of a franchise as well as a comparison to other franchise categories and systems.
Read moreFranchisors Need to Control Their Franchisee Development Strategy
Posted by Franchise Grade Team February 26, 2016
A number of years ago, Subway founder Fred DeLuca was asked to explain his development strategy for Subway. His response was simple: “I want to be where every McDonalds is and to locate as close as possible to them because they have the best site location strategy.” Whether Fred’s comment was serious or not, one cannot question Subways success.
Read moreDoes Franchising Need Reform?
Posted by Franchise Grade Team May 30, 2015
Does the franchise system need to be reformed? Before answering that question how much do you know about franchising? Listen in as Josh Brown discusses very interesting statistics from FranchiseGrade.com.
Read moreDoes an FAC or IndFA Add Value In A Franchise System?
Posted by Franchise Grade Team May 28, 2015
A franchisee advisory council or an Independent Franchisee Association may provide value in other ways such as engagement with the franchisor, preventing costly litigation, a forum for dispute resolution, sounding board for the introduction of new products or services by the franchisor and a vehicle for assessing the attitude of the franchise network.
Read moreAnnualized Costs Of Initial Franchise Investments
Posted by Franchise Grade Team May 12, 2015
One of the leading causes of franchisee failures is undercapitalized franchisees. Being able to more accurately predict the financial requirements of a franchise investment and compare the results to available investment capital can lower the risk of being undercapitalized.
Read moreHow Item 19 FPRs Are Shaping The Franchise Industry
Posted by Franchise Grade Team May 7, 2015
Item 19 Financial Performance Representations (FPR) are a key component in any prospective franchisee's due diligence process. FPRs help them to analyze a franchise investment for the opportunity of a return. They are critical in constructing a pro forma income statement and cash flow projections.
Read moreWhy You Should Talk With a Franchise Lawyer Before You Buy a Franchise
Posted by Franchise Grade Team April 15, 2015
So you’ve decided to pursue a franchise opportunity and have done some preliminary research to determine if it is a good fit with your business goals and lifestyle. You’ve even identified where you’ll get the money to make the purchase. Before you proceed, consider the issue of “Due Diligence” – doing all the research and completing myriad tasks to ensure your success as a franchisee. One of the most critical due diligence tasks you can do is to talk with a good franchise lawyer BEFORE you make the purchase. Why?
Read moreWhat It Takes to Build Long-term Vision
Posted by Erle Dardick January 8, 2015
If you're looking to enter into or start a business, there are a few key things to consider when trying to determine to long-term success of your endeavour.
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