Report Reveals Value Of Franchisor Financial Transparency

By: Multi-Unit Franchisee | 16,218 Reads | 2 Shares

%3Cp%3EA+new+study+by+FranchiseGrade.com+offers+further+proof+that+franchise+brands+providing+Financial+Performance+Representation+%28FPR%29%2C+thereby+revealing+a+degree+of+financial+transparency%2C+grew+by+a+larger+margin+over+time+than+those+that+didn%27t.%3C%2Fp%3E%0D%0A%3Cp%3EFranchiseGrade.com+analyzed+1%2C905+franchise+systems+from+2010+to+2016+to+identify+any+performance+results+between+franchises+that+provided+an+Item+19%2C+Financial+Performance+Representation+%28FPR%29+compared+to+those+that+didn%27t.+The+%3Ca+href%3D%22https%3A%2F%2Fwww.franchisegrade.com%2Freports%2Fdownload%2Ffinancial-transparency-delivers%22+target%3D%22_blank%22+rel%3D%22noopener+noreferrer%22%3Eresults%3C%2Fa%3E+indicated+that+franchise+systems+that+did+an+FPR+grew+by+13.8+percent+while+those+that+failed+to+provide+an+FPR+declined+by+minus+.02+percent.+Franchisors+who+provided+expense+data+in+their+Item+19+grew+by+the+largest+margin+at+18.4%25.%3C%2Fp%3E%0D%0A%3Cp%3EJeff+Lefler%2C+CEO+of+FranchiseGrade.com+commented+on+the+report+saying%2C+%22The+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%27t.+Franchisee+candidates+seek+and+require+financial+information+in+order+better+evaluate+a+franchise+opportunity.%22+He+continued%2C+%22The+data+shows+that+those+franchise+systems+without+an+Item+19+haven%27t+grown.+But+until+we+see+the+franchisee+results+of+these+systems%2C+the+reasons+why+are+assumed+but+not+verified.%22%3C%2Fp%3E%0D%0A%3Cp%3ETo+access+the+report+%3Ca+href%3D%22https%3A%2F%2Fwww.franchisegrade.com%2Freports%2Fdownload%2Ffinancial-transparency-delivers%22+target%3D%22_blank%22+rel%3D%22noopener+noreferrer%22%3Eclick+here%3C%2Fa%3E.%3C%2Fp%3E

Published: November 29th, 2016