At the moment, franchise regulations leave it largely up to the franchisee to ensure they are not investing in a bad business. Here are a few steps operators can take to keep from falling into a Burgerim-like trap.
The franchisee takes most of the risk in the franchisor-franchisee relationship, and failure means you can lose your business and even your personal assets. Keep that in mind as you look for franchise opportunities.
Favor franchises that provide earnings claims in their franchise disclosure document (FDD). But don’t trust them. Talk with numerous franchisees and get their profit-and-loss statements. Ask them everything you can about the brand.
Simple Google searches of the brand can do wonders. Look up legal actions, Yelp scores, Facebook, Twitter and other social media accounts to see what people are saying about a brand. Talk with customers and visit multiple locations.
Just because a lot of people are opening locations doesn’t make a brand good. Look at the FDD and compare the number of franchises sold with the number of locations open. If a franchise has a lot of sold locations but not many open, that’s a massive potential red flag.
The trade group is calling for changes in disclosure rules before people buy a franchise. It comes as federal regulators examine rules for franchise companies.
Whether you’re a first timer or conference veteran, here’s what you need to know about the biggest restaurant show in the Western hemisphere, which begins in Chicago on May 18.
The prohibition takes effect July 1. Delivery fees would still be allowed, and automatic gratuities tacked onto the tabs of large parties would also be permitted at least initially.
The 89-year-old family-dining chain has unveiled a new store in Orlando that gives a liberal nod to the brand's past while incorporating new touches like a bakery.