It’s that time of the year again when countless emails and solicitations are directed to franchisors reminding them to revise and renew their FDD. Although your franchise attorneys are best qualified to oversee this important activity it’s important to view the FDD renewal as a two-step process. By following our recommendations you’ll be assured of having a competitive, compliant and complete FDD.
“If you don’t know where you’re going any road will get you there.”
The first step is to identify how your FDD compares to competitors and similar franchise opportunities. This requires having the right information. Franchise Grade is the only company that can access the data quickly and at a reasonable cost. Our FDD Audit will compare and benchmark key items in your FDD to your franchise category, sector and the franchise industry.
Here are some of the FDD Items that draw the most scrutiny. Before you and your attorney determine what changes to make you’ll need to know the landscape.
Having this information will enable you to enter Step 2.
In Step 2 you’ll work with your franchise attorney to implement revisions to your FDD.
To begin with, there have been several changes to FDD disclosure for 2018. These include:
Working with your franchise attorney incorporate those revisions to your FDD to make it more competitive. There may be operational changes that need to be made including revisions to the Franchisee Operations Manual. One of the most important disclosures in an FDD is the Financial Performance Representation. Franchisors that provide a comprehensive FPR will have a competitive advantage and provide prospective franchisees valuable information.
There have been various changes in average franchise investments during this time, some changes were more dramatic than others.
As a business owner, you’re making hundreds of decisions daily. You have tough choices to make that can affect the company positively or negatively.
Being an entrepreneur is like wandering a forest with no path. Making twists and turns and choosing a direction based on the information you’ve gathered.
The excitement and thrill of building a successful business from the ground up is difficult to top. 96% of businesses fail within the first 10 years.
Owning a business is hard. Each venture has its differences – different customers, different go-to-market strategies, different business partners.