Having said that, let me explain how one can build a reasonable financial model that can be used as part of the decision-making process. The franchise industry is heavily regulated and supervised by the Federal Trade Commission. Every candidate that is going through an investigation will receive a copy of each franchisor’s Franchise Disclosure Document (FDD). Every FDD is structured the same and has a section called ITEM 19 – Financial Performance Representation. Franchisors are not required to provide Financial Performance Representations but those that do are required to substantiate the data provided. Fortunately, most of the companies I work with do provide financial performance in their FDD.
By using the Financial Performance Representation in the FDD and validating that information with existing franchisees as part of the due diligence process, a prospective franchisee can create a financial model that they can use to help evaluate the franchise opportunity. Of course, as with any business, the success of a franchisee will also depend on other factors including territory or location, skill, level of effort, the commitment to following systems and management. See Video
As someone with years of business operations, development and franchise experience, I can help you cut through the clutter and provide you with valuable insight and insider knowledge. I work with you to understand your motivation for business ownership, identify your personal and business goals, and create a customized model that we will use to narrow down your search to those concepts that match your model, saving you enormous amounts of time and energy. I will then introduce you to pre-screened companies that match your model and act as a guide and resource during your decision-making process.
Zip, Zilch, Nada. My service is free to you.
The candidates I work with don’t pay anything for the service I provide. I am paid by the franchisors and they are more than happy to work with me and the candidates that I present to them. Why? Because they know that I will bring them well-educated and excited franchise prospects that are interested in owning a franchise that matches with that franchise opportunity. Since the franchise industry is highly regulated, the franchise fees you pay to a franchise business will be the same, regardless of whether you work with me or not.
Let me answer that with a question. If you were searching for a new home, would you ask a realtor just to give you a list of all houses that are on the market? Of course not. Your realtor asks you questions about location, schools, # of bedrooms and bathrooms, size of yard, single or multi-story, contemporary or traditional, single family or multi-family, how soon you are looking to move, etc. They help you narrow your search so that you can find exactly what you are looking for and without wasting time and energy. I do the same.
As a part of my proven process, I help you narrow your list to those franchise opportunities that have available territory and that match the business characteristics that you are looking for. If you are serious about franchise ownership, I will save you both time and money.
We have carefully pre-screened hundreds of companies from all areas of franchising. They include companies of all types including mall retail, shopping center retail, home based, senior-care, food, automotive, personal services, fitness and business to business sales. These companies must meet the exacting standards we have set to be included in our inventory. We examine the record of the franchisor relating to litigation, failures and, most importantly, the satisfaction of the existing franchisees.
Of course, even though we have done our own research, you still must do your own thorough and complete investigation of any franchise opportunity, whether it is a company we work with or otherwise.
Absolutely not! I love franchising, I am passionate about franchising, I think it is a wonderful vehicle that can change people’s lives for the better. But it is not for everyone. Or sometimes, the timing just isn’t right, and that’s ok.
My goal is to work with every candidate by providing the same impartial service and helping to guide them through their own, personal decision-making process. Regardless of their decision, I want them to feel that the process had value and that they came away from the experience better educated and they were able to make a good business decision. And, when I do that, I know that they had a positive experience and will then feel good about referring friends and family.
The Confidential Questionnaire (CQ) is required for every candidate that I work with. It provides me with enough personal and financial information to help identify which concepts make sense for that candidate. If a candidate doesn’t provide a completed CQ, then I know they are not serious about franchise ownership.
The information you provide is 100% confidential and will only be seen by myself and any franchisor with whom you decide to pursue an investigation process. Your CQ is never sold, we do not perform credit checks and the information is securely and electronically stored.
The process is tailored to your goals and timeframe. An individual that is very motivated can complete a thorough investigation in 4 weeks, sometimes even less. For others, it may take longer, but a franchise investigation is usually not a long, drawn-out process.