Info to help you make informed decisions about franchise business ownership
Articles on Franchising:
- Discovery Day: Make The Most of It
- I Like It! How Do I Know It’s Real?
- DNA of Successful Franchise Systems
- Going Independent or Joining a Franchise System
- The Importance of Suppliers in Franchising
People in Transition:
- Early Fall 2019 – “Action” – the Real Driver of Success
- Mid Summer 2019 – Time is Precious. Life is Short… If Not Now, When?
- April 2019 – Risk is Relative
- March 2019 – The Choice is Yours
- February 2019 – Cultivating Gratitude
- January 2019 – State of Franchising 2019
- December 2018 – 6 Simple Steps to Setting and Achieving 2019 Goals
Frequently used franchise terms
A method of business expansion characterized by a trademark license, payment of fees, and significant assistance and/or control.
Marks, brand name and logo owned by a franchisor, which
FDD (Franchise Disclosure Document)
The format for the disclosure document which provides info about the franchisor and franchise system to the
A license provided by
The person or company that grants the franchisee the right to do business under their trademark or trade name.
The person or company that is granted the franchise by the franchisor to do business under the franchisor’s trademark or trade name.
Written contract between the franchisor and franchisee detailing each party’s obligations, requirements, limitations, etc.
A sum paid by the franchisee to the franchisor at the time the franchise agreement is signed. The fee may cover certain expenses, including but not limited to training costs, on‐site startup costs, and promotional charges.
A fee paid by the franchisee to the franchisor, on a scheduled basis, usually based on a percentage of the franchisee’s gross sales.
A specific and defined geography assigned to a franchisee by the franchisor, documented in the franchise agreement.
Estimated Initial Investment
All fees and expenses a franchisee would incur in starting a franchised business. Includes fees paid to franchisor, all goods and services to be purchased from suppliers. See detailed estimate in Item 7 of FDD.
Financial Performance Representation (FPR)
Any representation by franchisor or their sales agent to a prospective franchisee that states or suggests a specific level or range of potential or actual sales, income, gross, or net profit. If provided, this info must be provided in Item 19 of the FDD.
Read the latest blog:
The IFA’s published “outlook” for 2018 called for the addition of nearly 14,000 new franchises. In the near future, we’ll learn the actuals and get a glimpse of their 2019 “outlook”. Over the past 60 days, I’ve reviewed franchise documentation for 150...read more
Being around “big idea” people can be inspiring. They see life through the lens of “opportunity”. Their big ideas may be the stuff of genius, however unleashing the potential of any big idea requires people capable of bringing them to life by taking “action”.Take a...read more