Franchise Grade® Publishes Analysis Of Increase In Franchise Buildout Options

The Complication of Buildouts in FDDs identified 299 franchise brands with multiple buildouts which equates to 819 franchise investment opportunities.

September 14, 2017 // Franchising.com // New York, NY - Franchise Grade®, the leading franchise market research firm in the franchise industry, has studied the impact of franchisor disclosure of additional buildouts in their FDD. This strategy represents an opportunity for a franchisor to offer varying franchise investments under the same brand name. Our study found that 64% of the 299 franchise brands offered 2 buildouts. Only 21 franchise systems offered 5 buildouts.

On average, 90% of franchise systems have separate Item 7s for their buildout options, yet only 13% disclose Item 20 outlets separately. A disclosure that is not clear and concise can be confusing for prospective franchisees and may even be misleading.

Jeff Lefler, CEO of Franchise Grade, commenting on this latest Facts and Figures report stated: “As more franchisors offer multiple franchises under the same brand these options include two or more buildouts. It’s important that franchisors present these buildouts in a clear and concise manner in their FDDs.” Lefler continued: “Franchisors that fail to meet this requirement can confuse prospective franchisees and their advisors, placing them at a competitive disadvantage.”

To download Facts and Figures: https://www.franchisegrade.com/reports/article/complication-buildouts-fdds

About Franchise Grade®

Franchise Grade is The Authority on Franchising. Our proprietary Franchise Intelligence platform empowers our clients to make smarter, data-driven decisions. Using Franchise Intelligence will accelerate your sales process, increase conversions and support development. Our data is used by leading media outlets, academic institutions, PE groups, brokers, franchisors and prospective franchisees.

SOURCE Franchise Grade®

###

Share this Story:

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

Scooter's Coffee
The success of the Scooter's Coffee franchise is based upon a commitment to quality products, fast and accurate service, and always delivering...
BrightStar Care
A small Investment that can Pay Big Dividends! Brightstar Care Franchise is a low overhead, quick to break-even, fast ramp-up, repeat customers.
ZIPS Dry Cleaners
ZIPS, since 1996, began as eight dry cleaners in the Baltimore-Washington, D.C., metro area and has grown to more than 40 stores. Find out more.
Discovery Point Child Development Centers®
Leading education-based childcare franchise founded in 1988 with corporate headquarters in Atlanta, GA. with a turnkey business model, real estate...
BirthdayPak
BirthdayPak is an award-winning marketing platform that brings local upscale businesses together with their best customers.

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)