Franchise Grade® Report Reveals Value Of Franchisor Financial Transparency

An Analysis of Franchise Systems over a 6 Year Period Indicated that Systems with Item 19 Disclosures Achieved Significant Growth While Others Declined

November 16, 2016 // Franchising.com // New York, NY - FranchiseGrade.com analyzed 1905 franchise systems from 2010 to 2016 to identify any performance results between franchises that provided an Item 19, Financial Performance Representation (FPR) compared to those that didn’t. The results indicated that franchise systems that did an FPR grew by 13.8% while those that failed to provide an FPR declined by minus .02%. Franchisors who provided expense data in their Item 19 grew by the largest margin at 18.4%. 

Jeff Lefler, CEO of FranchiseGrade.com commented on the report: “The results of our research validated our belief that franchisors that provide financial transparency through their Item 19 have a distinct advantage over those that don’t. Franchisee candidates seek and require financial information in order better evaluate a franchise opportunity.” Lefler continued: “The data shows that those franchise systems without an Item 19 haven’t grown. But until we see the franchisee results of these systems, the reasons why are assumed but not verified.”

About FranchiseGrade.com

FranchiseGrade.com objectively grades over 2,500+ franchise systems for people seeking a franchise opportunity. Our grading is focused on a franchise’s investment risk. As the only company to freely publish research data on franchise opportunities we disclose the grade of every franchise in our Franchise Grade® Find The Best Platform. The integrity of the data we provide is critical, and as the only company to publicly identify healthy and unhealthy franchise investments, FranchiseGrade.com demonstrates it’s the Authority on Franchising. FranchiseGrade.com is the major source of franchise industry data for major media publications such as The Wall Street Journal, Bloomberg, Forbes and a variety of local news outlets.

SOURCE FranchiseGrade.com

###

Share this Story:

Reader Reactions:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Lice Clinics of America
Parents are desperate for a fast and effective solution. Until now, the only options were pesticide-based products that require hours upon hours of...
School of Rock
With more than a decade of experience and over 170 schools throughout North and South America, Africa and Asia Pacific, School of Rock is the leader...
Shakeaway
ShakeAway is a unique global company with stores popping up all over the world! Get involved in this fun, fast growing and profitable franchise now...
Midas
Midas, a recognized brand throughout the world and highly renowned name in complete car care, is proud to be one of North America's original...
The Joint Corp.
The Joint® Chiropractic is reinventing chiropractic care. Our vision is to become the largest, most respected provider of chiropractic services...

Subscribe to Franchising.com Express

A Franchise Update Media Group Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved. Site Hosting Provided By: wishVPS on FUMG3

In Loving Memory Of Timothy Gardner (1987-2014)