Is this is a stable Franchise to buy?
When you are looking for a franchise to buy one of the great things provided to you is a Franchise Disclosure Document or FDD. The FDD is a document that discloses the franchise’s history and track record. It is an extensive document that equips a new buyer of a franchise with full details as to what they are about to purchase.
Inside the FDD, the franchise’s entire financial picture is disclosed. You will find pages and pages of their financial records. This is fascinating to see when you know what to look for. You can assess the company’s debt level, their spending habits, their cash flow, the royalties they earn, and if the company is growing or shrinking.
When you know this, it is easy to quickly choose systems that are doing well. Stability in the brand and their finances makes the difference to your ability to be supported by the system and your ability to earn revenue.