Whether you’re an established franchisor or are leading an up-and-coming franchise brand, having a great franchise disclosure document (FDD) is crucial. The FDD is a valuable asset to you, your franchisees, and anyone who is considering becoming a franchisee. Accurate Franchising, Inc. was founded by experts with decades of experience in the franchising space, and we’ve helped dozens of companies develop strong FDDs. Here’s a quick look at a few reasons why they are so valuable.
They Get Right to the Point
Unlike websites and marketing materials, an FDD gets right to the heart of what your franchise has to offer. Because FDDs are legal documents, they need to be very clear about a number of things including:
- How much franchisees should expect to invest
- What supports they are entitled to
- Historical details about your brand (e.g. litigation)
A great FDD needs to give franchisees a crystal-clear understanding of what they’re investing in to avoid misunderstandings later. In fact, when franchisees sign their agreements, they’re typically indicating that they’ve read and agree to the FDD. Accurate Franchising, Inc. can work with you to develop or improve on your FDD so that it clearly lays everything franchisees need to know.
It Can Protect Your Brand
Having an FDD that’s clear and thorough can protect your brand should franchisees be unsatisfied with their investment. Because your FDD lays out exactly what services you will and won’t provide, franchisors can easily point to it when they’re working with unhappy franchisees. Accurate Franchising, Inc. works hard to help franchisors develop strong opportunities for their investors to maximize their chances of increasing their ROI, but no one can predict the future – that’s why starting off any partnership with a strong FDD is crucial.
It Gives You the Chance to Highlight Your Best Qualities
It’s likely that your prospective franchisees will be investigating numerous franchise investment opportunities and have been looking over other FDDs in addition to yours. When you partner with our franchise consulting company, we can help you to work the best highlights of your opportunity into your FDD. For instance, well-established franchisors might opt to include an Item 19 in their FDD, which details the financial performance of some of their franchises. Franchisees with a particularly strong training and support program use the opportunity to detail the many resources their franchisees will enjoy.
Distribution is Power
Of course, one of the best parts about having a great FDD is that franchisors have control of who to share it with. Because FDDs contain detailed information about a franchise’ history, many franchisors opt not to post it publicly for everyone to read. Rather, many franchisors are able to use FDD requests as a way to develop a dialogue with qualified prospective franchisees to give them more information about their brand. Accurate Franchising, Inc. can help you use the distribution of your FDD as a valuable inbound marketing tool to develop quality leads.
Ready to learn more about how our franchise consulting company can help you develop a strong FDD? Contact us today!