Franchisee Articles Archives

Guide to Understanding Item 19 of an FDD

Are you trying to decode Item 19 of an FDD? This essential part of the Franchise Disclosure Document offers potential financial performance data crucial to your investment decision. In our guide to understand Item 19 of an FDD, we’ll walk you through this section’s key elements, ensuring you’re well-equipped to dissect the figures and projections […]

What is a Franchise Business Review and Do I Need One?

A “what is a franchise business review” is a critical analysis of a franchise system that offers potential investors deep insights into its financial health, operational culture, and overall franchisee satisfaction. This review aids in making an informed decision when choosing a franchise to invest in, highlighting strengths and potential risks. As an entrepreneur exploring […]

What Does ‘Royalty Fee’ Mean in a Franchise Agreement?

What does a royalty fee mean in a franchise agreement? It’s the ongoing cost you, as a franchisee, pay to the franchisor for using their brand and receiving continuous support. In this article, you’ll learn how these fees are determined, managed, and their role in franchising success. Key Takeaways Royalty fees are ongoing payments made […]

Understanding Your Personal Guarantees in a Franchise Agreement

Entering into a franchise agreement often involves a critical component that could impact your personal financial security: the personal guarantee. When considering a franchise opportunity, understanding the implications of signing a personal guarantee is essential. This direct responsibility for the franchise’s obligations ties your personal assets to the success of the business. This article delves […]