June 02, 2009 // Franchising.com // Minneapolis, MN, – At Great Clips, Inc., realistic and supportable projections of sales, expenses and profits are readily available and detailed in the brand's Franchise Disclosure Document (FDD) under Item 19, the "Financial Performance Representation."
"'How much can I make?' If that's not the first question prospective franchisees ask, it's one of the most important," said Rob Goggins, vice president of franchise development for the 2,700-unit international salon chain. "We think every franchisor should include that information in their FDD, but only about 15-20% choose to."
The FTC does not require franchisors to present earnings claims in writing. They "can," but it's voluntary, at the franchisor's discretion.
"If you look at our competitors, they often leave the Item 19 blank, or they only provide minimal sales information that doesn't provide the prospective franchisee the opportunity to better understand the salon-level sales, cost and operating profit picture." says Goggins. "That's their prerogative, but I think the full Great Clips Item 19 financial information allows our prospects the deeper insight that they want when investigating our franchise opportunity. We believe in full disclosure."
"I'm always curious why franchisors are reluctant to share their sales and profit information. If I were a prospect, I'd be asking a lot of questions. Great Clips answers their questions—in writing"
Great Clips is North America's largest hair salon franchise brand with more than 2,700 salons conveniently located in high-visibility strip malls in nearly 140 markets. Great Clips employs nearly 30,000 stylists who are trained at 65 centers throughout the system. Great Clips consistently ranks among Entrepreneur magazine's Franchise 500Ò. Entrepreneur also ranks Great Clips one of their Fastest Growing and one of America's Top Global Franchises for 2009.