Franchise Grade® Analyzes Item 20 In FDDS

Results Reveal Since 2010, 13% of FDDs have Errors in Item 20

July 12, 2017 // Franchising.com // New York, NY - Franchise Grade®, the leading franchise market research firm in the franchise industry, has published its latest Facts and Figures report – “Item 20 Errors Reflect on Franchisor Performance”.

Since 2010, Franchise Grade®, identified 297 franchise systems with disclosed errors in their Item 20s. The sectors with the most errors are Personal Services (25.6%), Quick Service Restaurants (18.2%) and Commercial and Residential Services (16.2%).

Commenting on the results of the report, Jeff Lefler, CEO and Founder of Franchise Grade states: “Although Item 20 doesn’t always receive the most scrutiny it deserves when a franchisor fails to correctly report their outlet activity it can reflect poorly on the quality of the franchise offering and pose a legal risk. When errors in an Item 20 are found, it can lead a franchise candidate and their attorney to develop apprehension regarding investing in that franchise opportunity”.

To download a copy of the report. ------> https://www.franchisegrade.com/reports/article/item-20-errors

About Franchise Grade®

Franchise Grade is the Authority on Franchising. Using their proprietary Franchise Performance Index, they grade over 2,500 franchise systems for investment quality and identify healthy franchises. Every franchise system’s data is published on their website and prospective franchisees use their services to help them find the best investment opportunities. Only the top franchise systems can receive their Made the Grade (MTG)™ designation. Franchise systems using the MTG™ designation attract better candidates and sell more franchises.

Franchise Grade is the only source of comprehensive information about franchising and here’s why:

  • It is totally fact based
  • It represents only objective analysis
  • It is graded and reviewed for franchisee investors
  • It is the largest database in franchising

Franchise Grade is the source of franchise industry data for major media publications such as Bloomberg, Forbes, Inc. Magazine, Newsday, Time, Black Enterprise and The Wall Street Journal.

SOURCE Franchise Grade

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