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If you are on your franchise journey, then you have probably poured over hundreds of pages of the Franchise Disclosure Document (FDD). The Franchise Disclosure Document (FDD) is a legal document that the Federal Trade Commission (FTC) requires franchisors in the United States to provide to prospective franchisees before selling a franchise. The FDD is divided into twenty-three sections or “Items”, each which require a franchisor to disclose certain information to assist prospective franchisees in making a well-informed decision before buying a franchise. This information includes a background on the franchisor, the individuals and entities associated with the franchisor, the franchise opportunity, the fees charged by the franchisor, the franchisor-franchisee relationship, as well as financial performance of the franchise system. If you're looking at one brand, or many, you have seen many of these. And while all 23 sections of the FDD are important, the biggest question that comes up when working with prospective franchisee is surrounding Item 19. This section will give you insight into average unit sales, top performers, and overall growth of the brand. Remember, realistic expectations are key in making an informed decision about joining a franchise. How many Item 19's have you reviewed? #FranchiseeTips #Item19Review #FranchiseDisclosure #FinancialPerformance #FranchiseGrowth #FranchiseSuccess

My colleague Mark Kirsch was recently quoted in an article published by @1851 Franchise titled "Top Insights for Franchisees to Successfully Navigate the Franchise Renewal Process.” Mark discusses the importance of franchisees being proactive long before the renewal date approaches. For more insights on the renewal process, read the full article here: https://bit.ly/4c7zoFO #FranchiseRenewal #Process #1851Franchise

My colleague Mark Kirsch was recently quoted in an article published by @1851 Franchise titled "Top Insights for Franchisees to Successfully Navigate the Franchise Renewal Process.” Mark discusses the importance of franchisees being proactive long before the renewal date approaches. For more insights on the renewal process, read the full article here: https://bit.ly/4c7zoFO #FranchiseRenewal #Process #1851Franchise

My colleague Mark Kirsch was recently quoted in an article published by @1851 Franchise titled "Top Insights for Franchisees to Successfully Navigate the Franchise Renewal Process.” Mark discusses the importance of franchisees being proactive long before the renewal date approaches. For more insights on the renewal process, read the full article here: https://bit.ly/4c7zoFO #FranchiseRenewal #Process #1851Franchise

Franchise Insights Part 3: Understanding Franchise Agreements Welcome back to our Franchise Insights Series! In our first two posts, we explored the basics of franchising and the importance of location. In Part 3, we’re diving into the critical topic of franchise agreements. What is a Franchise Agreement? A franchise agreement is a legally binding contract between the franchisor and franchisee. It outlines the rights and responsibilities of both parties and covers important aspects such as fees, territory, training, support, and more. Understanding this document is crucial for a successful franchise relationship. Key Elements of a Franchise Agreement: Initial Fees and Royalties: Details on the upfront costs and ongoing payments required to operate under the franchisor's brand. Territory Rights: Defines the geographic area where the franchisee can operate and any exclusivity terms. Training and Support: Specifies the training provided by the franchisor and the ongoing support to help the franchisee succeed. Operational Guidelines: Includes rules and standards for running the franchise to maintain brand consistency. Renewal and Termination: Outlines the terms for renewing the agreement and conditions under which the agreement can be terminated. Why is it Important to Review Your Agreement Carefully?   Reviewing your franchise agreement carefully with a British Franchise Association accredited Franchise lawyer is essential. It ensures you fully understand your obligations and protects your interests. Remember, this agreement will govern your business relationship, so clarity and mutual understanding are key. Have questions or topics you want us to cover? Drop them in the comments below! Visit our website to learn more: https://lnkd.in/d5RM8-zY Or drop us an email: hello@partnerwisefranchise.com #FranchiseInsights #Franchising #FranchiseAgreement #BusinessSuccess #PartnerWiseFranchise

I was pleased and humbled to recently be quoted in an article published by @1851 Franchise titled "Top Insights for Franchisees to Successfully Navigate the Franchise Renewal Process.” Mark discusses the importance of franchisees being proactive long before the renewal date approaches. For more insights on the renewal process, read the full article here: https://bit.ly/4c7zoFO #FranchiseRenewal #Process #1851Franchise

Some of the questions I posed the other day at the Responsible Franchising discussion at the Titus Center for Franchising at Palm Beach Atlantic University: What is Private Equity’s role in franchising and how can we franchise responsibly while participating in capital markets? What types of support structures need to be in place before selling units? Is there an org chart that should be standard for an emerging brand? What standards should we have in the franchise sales process? Should there be a uniform definition of “semi-absentee” so we can prevent miscommunication in the sales process? What can we do to verify that the model being sold to the franchisee is truly viable? How can we verify that a franchisor has the capital necessary to support franchisees? How can we educate franchisors about the amount of time and capital it’ll take so they can make an informed decision whether or not to franchise? How can we ensure that franchisees who think they don’t have to work when they buy a franchise understand that franchising is not a “get rich quick scheme?” Should there be standard education or a course that a brand must go through before becoming a franchisor? Should Franchise Sales Organizations that require brands sell units as “absentee” or “semi-absentee” in order to be part of their portfolio be allowed to do that? Just some questions to think about. These discussions need to happen frequently, publicy, and by all stakeholders in the industry in order to affect change. #responsiblefranchising

Before investing in any franchise concept, it is imperative that all aspects of the offering are vetted and that qualified and experienced advisors are consulted.  John Polinko from our Franchise practice explains the lessons that can be learned from the rise and fall of Burgerim.

More great highlights about Forum on Franchising!

Training is a vital part of operating a successful franchise. This article explains the types of training necessary to run a franchise and how each can help you thrive!