Franchise Business Plans and Earnings

Franchise business plans: who's responsible?

Franchise business plans & FPR’s 

Who is responsible for developing  franchise business plans, and how does a potential franchisee obtain details and information about them? Does the company that offers the franchise help in developing the franchise business plans so that I can obtain a loan or other financial assistance?  Every time I read about franchising, I never see any information on this topic.

Franchise business plans and FPR’s

You hear little about the franchise business plans and earnings because most franchisors do not want to touch the subject of income, especially as it relates to formal financial statements. In fact, the majority of franchisors do not even offer FPR (Financial Performance Representation) information in their disclosure documents. The production of franchise business plans is a delicate subject for franchisors. They are conditioned to “not” talk about earnings. If the reason is not obvious, then here it is in a nutshell. Franchisors do not want to load franchisees with ammunition if income figures are not met.

Franchise business plans and post sale information

You should know, however, that franchisors are able to disclose all manner of income and sales once you become a franchisee even if that franchisor does not offer an Item 19 (Financial Performance Representation) in its FDD.  Is that too late to know the truth? We would, in most cases, suggest exploring those concepts that offer FPR’s so that franchise business plans can be developed.

By |March 27th, 2014|Categories: Buying a Franchise, Franchise Information, Franchise Opportunities, Franchisee|Tags: , |Comments Off on Franchise Business Plans and Earnings