What is FranchiseReview and how does it work?
What is ?
We review FDD’s and provide a “FranchiseReview” certification to assure the legitimacy of the franchise. We review all 23 components of the FDD to assure compliance with FDD standards.
Who is ?
Our FranchiseReview certification process is carried out by experienced franchising professionals who thoroughly examine each franchise disclosure document. After confirmation, only legitimate franchises are certified with a FranchiseReview certification.
Where is located?
The certification seal can be found on a franchisor’s AskMrFranchise.com web page. Users can utilize a FranchiseReview certification while researching business or franchise opportunities, to assure their legitimacy.
What are the 23 check-point items?
- The franchisor and any parents, predecessors, and affiliates:
This portion of the FDD establishes the background and history of the franchisor.
- Business Experience: The franchise’s main figureheads, including directors, trustees, partners, etc.
- Litigation: Pending or completed litigation.
- Bankruptcy: Financial information regarding the franchise.
- Initial Fees: Range of initial fees associated with the purchase of the franchise.
- Other Fees: Other not refundable fees involved in purchasing the franchise.
- Estimated Initial Investment: This table outlines the expenses a potential franchisee can expect to pay.
- Restrictions on Sources of Products and Services: This section outlines what the franchisor may and may not sell.
- Franchisee’s Obligations: A list of the franchisee’s obligations and tasks.
- Financing: Franchisor discloses any financing they may offer to the franchisee.
- Franchisor’s Assistance, Advertising, Computer Systems, and Training: Outline of the assistance and training the franchisor offers to the new franchisee.
- Territory: The protected territory the franchisee will receive for their new franchise location.
- Trademarks: Purchasing a franchise grants the franchisee the right to use the company brand and trademarks.
- Patents, Copyrights, and Proprietary Information: Any pending or current patents, copyrights, or other relevant proprietary information.
- Obligations to Participate in the Actual Operations of the Franchise Business: Specific outline of the responsibilities of the franchisee.
- Restrictions on what the Franchisee May Sell: A breakdown on what the franchisee may or may not sell.
- Exit Strategies and Dispute Resolution Procedures: Restrictions related to transfer or termination of the Franchise Agreement.
- Public Figures: Any public figures that may be involved with the franchise.
- Financial Performance Representations: Estimated financial performance representation
- Outlets and Franchisee Information: Table of all the company’s franchised locations from the previous three years.
- Financial Statements: Audited financial statements for the prospective franchisee’s review.
- Contracts: All agreements and contracts that the potential franchisee is expected to sign.
- Receipts: Receipts in this section verify that the prospective franchisee received the FDD.