So you’re interested in purchasing a franchise? Perhaps it’s a fitness franchise? You look into the model and then you receive the FDD (Final Disclosure Documents). Now the real work begins to make sure that this franchise is actually a franchise opportunity for you. No matter how great the franchise model is you need to make sure you understand fully how much you are going to have to pay your franchisor and exactly what they are going to provide for these royalty payments. In the franchise world we have seen a lot of FDD’s that can be a bit misleading as they pertain to royalties, which can usually cause some anger between franchisee and franchisor. As a perspective franchisee it’s time you put your mind to asking your perspective franchisor the tough questions before you invest money into that particular franchise model. As a franchisee you can’t sit on these questions because you are the one who is investing your hard-earned money into a franchise model. The key word is ‘invest’. When you buy into a franchise model you are investing into a business opportunity, so make sure you know exactly what you are getting into before you commit to a franchise. I would also recommend that you compare competive franchises models to each other to make sure you make the best possible investment for you.
Thanks so much for reading and if you would like to learn more about our franchise opportunities at Illuminate Gym check us out at http://www.illuminategym.com/franchises.php or www.illuminategym.com. Don’t forget to have a healthy day!
Tags: FDD, final disclosure documents, fitness franchise, fitness franchise opportunity, franchise, franchise model, franchise opportunities, franchise opportunity, franchisee, franchises, franchisor, gym, gym franchise, gym franchises, http://www.illuminategym.com/franchises.php, illuminate gym, invest, investor, www.illuminategym.com
Very useful article indeed, I was looking to ‘invest’ in a food chain franchise, but I looked at the disclosure documents and found that I’d only get 30% of the revenue we produced, which could of been a real disaster if one thinks about it carefully. Franchises need to be handled with great caution, as there are some sneaky bits they tend to put into the deal.
Lipo (obviously not your name)….. Yes you do need to watch out for deceptive FDD’s and franchise agreements. As I said before as a franchisee you need to know how much you are going to pay to your franchisor and what kind of franchise support you are going to receive for your investment.