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The Role of Large Investment Firms

Video Overview It’s not uncommon for large investment firms to buy franchisors. These firms may own upwards of 20+ franchise companies. Jania Bailey, FranNet CEO, explains that even though a brand by itself might have a weak balance sheet, you can find solace in the fact that the firm behind it has the capital [...]

By |2020-04-23T18:25:48+00:00April 17th, 2020|Categories: Franchise Education|

What is a Royalty Self-Sufficient Franchise?

Video Overview A franchise system that is royalty self-sufficient is essentially generating enough income from franchisee royalties to cover their overhead. Royalty self-sufficiency happens at different times with franchisors. Some hit it at 50 units open, some at 100+. Beware of franchise systems that are dependent on another franchise sale to cover payroll. FranNet [...]

By |2020-04-23T18:25:56+00:00April 17th, 2020|Categories: Franchise Education|

FDD Item 20: Signed But Not Open

Video Overview FranNet CEO, Jania Bailey, examines what it means when you see “sold but not open” in a franchisor’s Item 20. Some franchisors sell multi-unit packs and they should have a development plan in place. When you see a lot of “sold but not open” reports in the FDD, this might be a [...]

By |2020-04-23T18:25:40+00:00April 17th, 2020|Categories: Franchise Education|

FDD Item 19: Financial Performance Representations

Video Overview FranNet Consultant and Kentucky Market President, Amanda Berry discusses the importance of the optional Item 19 in an FDD. For some businesses, it doesn’t make sense to include it. For others, it’s quite necessary. Your local FranNet advisor can help you decipher whether or not this item is actually crucial to the concept [...]

By |2020-04-23T18:25:01+00:00April 17th, 2020|Categories: Franchise Education|

FDD Item 7: Advising Clients on Initial Investments

Video Overview FranNet CEO, Jania Bailey, reviews the things you need to be aware of while looking at Item 7 in an FDD. At FranNet, we advise our clients to compare that initial investment estimate with existing franchisees that are in markets similar to yours. Important factors to consider are things like lease or [...]

By |2020-04-23T18:24:46+00:00April 17th, 2020|Categories: Franchise Education|

Importance of the FDD

Video Overview A 200+ page Franchise Disclosure Document (FDD) can be intimidating. However, it’s crucial to your due diligence process and your success with a franchise system. Jania Bailey, CEO of FranNet, encourages you to whip out that highlighting pen and get to studying! Remember that a  local FranNet Consultant is standing by to help [...]

By |2020-04-23T18:18:15+00:00April 17th, 2020|Categories: Franchise Education|

How Much Money Can a Franchisee Make?

Video Overview Part of franchise law is that the franchisor cannot make an earnings claim. Amanda Berry, FranNet Consultant and Kentucky Market President, explains why this law was put into place and how system-wide validation of a franchise can help you gain a better idea of what your potential could look like. [...]

By |2020-04-23T18:18:15+00:00April 17th, 2020|Categories: Franchise Education|