The Franchise Disclosure Document (FDD) is a critical document that prospective franchisees need to understand. It provides detailed information about the franchisor and the franchise
Through the conversations and activities included during the due diligence phase, you will be learning all about the opportunity, the company and the potential fit to your personal business model.
Pertinent information and answers to all of your questions comes from a combination of these 5 sources:
A solid process will generate all the information you need in order to make an informed, intelligent business decision. While your franchise advisor educates and guides you, the franchisor executives have their process in order to share all aspects of the offering. Remember the FTC regulates franchising and certain aspects are controlled, including some time-frames.
Typically, conducting due diligence on one or more brands can take as little as 3 weeks and as long as 3 months, given your availability and commitment.
In the end, you will have a very clear understanding of the business and it’s potential while the franchisor will have a very good idea of your potential fit as a franchisee. Everyone is looking for the same thing., a strong fit. When that happens, the company will make you an offer to join the brand.
Track your progress using the acronym below, FOCUS. Keep good notes and remain open-minded, curious and analytical. Good Luck!
Selecting a franchise is a significant decision that requires careful consideration and due diligence. As an experienced franchise advisor, Mariel Miller guides you through essential questions to ensure your choice aligns with your personal and financial goals. Here are ten key aspects to evaluate:
Choosing a franchise is a journey, and having an expert guide can make all the difference. Contact Mariel Miller today to navigate this process with confidence.
Consider whether your financial objectives align with the franchise model. Different franchises offer varying revenue potentials and return on investment timelines. Mariel can help you assess and understand the financial projections of potential franchises to ensure they meet your financial goals.
A successful franchise should provide an opportunity to accumulate wealth and build equity. When you’re ready to sell, you want to reap a significant return on your investment. Mariel guides you in understanding exit strategies and the potential resale value of your franchise.
Invest in a franchise that operates in a growth sector and is resilient to market threats. Mariel offers deep industry insights to evaluate the health, trends, and potential threats within your desired franchise sector.
Before investing, map out a clear path to replacing your current income or meeting your financial goals with the franchise. Mariel helps create realistic financial forecasts to determine how soon you can expect your franchise to match or surpass your current earnings.
Social media platforms are essential tools for reaching and engaging your audience. We will craft a comprehensive social media strategy tailored to your brand, from content creation to audience engagement.
Each franchise comes with its lifestyle implications, and it’s vital to choose one that complements the quality of life you desire. Mariel can help you understand the time commitment, stress levels, and flexibility offered by different franchises.
Choose a franchise that meets a specific need or solves a problem in a unique or competitive way. Mariel helps you evaluate the franchise’s product or service offering, its competitive advantage, and its relevance in the market.
Franchises with high customer retention or referral opportunities often enjoy more stability and growth. Mariel helps assess the franchise’s customer loyalty and referral potential, which are key indicators of long-term success.
The franchisor’s financial strength, staffing, and experience play a significant role in your success. Mariel can assist you in assessing the franchisor’s capacity to provide effective training and ongoing support.
Speak with existing franchisees about their experiences. Positive feedback about the product, brand, earnings, system, and franchisor is a good sign. Mariel can guide you through this process and help you interpret the feedback effectively.
Take the quiz and see how you do!