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Nick, Is there any way of determining the
success of a new franchise or franchise location?
Gene
Gene,
There are really only two means of
predicting performance in this industry, and neither one
can be banked on.
The first is the franchisor's earnings
claims if provided in the UFOC. Roughly 20% of franchisors
offer earnings claims for you to consider, so you have
an 8 out of 10 chance of not be privy to those numbers.
Why? Most franchisors really don't want to expose reality
in the system. Not a great endorsement? You're right!
Most franchisors do not provide such claims as they are
not able, or not willing, to meet the guidelines for such
disclosure. Therefore, they tend to leave such examination
to you as a prospect by means of performance testing #2.
That means carefully "getting to know" and then
questioning a number of franchisees concerning their individual
experiences and performance. Unfortunately, there is no
clear path for knowing what "your" location
might experience.
Best regards,
Nick
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