Nevada Franchise Comparison Worksheet
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How to fill out Franchise Comparison Worksheet?
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FAQ
The Franchise Rule requires the pre-sale disclosure of material information to prospective franchisees about the franchisor, the franchised business, and the terms and conditions that govern the franchise relationship.
What to look for when choosing a franchise A strong support system for franchisees. One of the biggest benefits of buying into a franchise is that the brand is already established. ... Investment in your potential. ... The franchisor's professionalism. ... Mutual expectations. ... Sales and business approach. ... Online reviews.
Ingly, if a franchisor requires franchisees to purchase or lease certain goods or services from the franchisor, its affiliates, or suppliers approved by the franchisor, Item 8 of the Franchise Disclosure Document (FDD) requires that the franchisor to disclose certain information pertaining to those ?purchase ...
These may include factors such as initial investment, ongoing fees, royalty rates, territory size, brand recognition, training and support, customer demand, growth potential, profitability, and exit options. You can use these criteria to create a checklist or a scorecard to evaluate each franchise opportunity.
Factors to Consider When Choosing a Franchise Include: The franchise should have a good sales record. ... The marketability of your product or service is key. ... Look into the competition in your area. ... Invest in a franchise that has a lot of repeat business. ... Be passionate about the franchise.
Item 21 of the amended Rule permits a new franchisor to issue an unaudited initial balance sheet, so long as that balance sheet is ?prepared in ance with generally accepted accounting principles.
The following is an itemized breakdown of some of the most important sections of the FDD you should focus on when conducting your due diligence. Franchise History. ... Legal Issues in the Franchise. ... Financial Woes in the Franchise. ... Growth Trends for the Franchise. ... Startup Expenses. ... Cash Flow Analysis.
These may include factors such as initial investment, ongoing fees, royalty rates, territory size, brand recognition, training and support, customer demand, growth potential, profitability, and exit options. You can use these criteria to create a checklist or a scorecard to evaluate each franchise opportunity.
