Baskin-Robbins
Food and Beverage
Founded 1945976 locationsCompany Profile
Year Founded:1945
Baskin-Robbins Franchise Cost
| Franchise Fee: | $25,000Key Metric |
| Total Investment: | $307,000 - $623,000Key Metric |
| Liquid Capital: | $77,500 |
| Royalty Fee: | 6% of gross sales |
| Marketing Fee: | 5% of gross sales |
Quick ROI Calculator
Based on Baskin-Robbins's actual financial data
Outlet Counts by Year
Historical outlet data extracted from FDD documents
Total US Locations:976
Scale relative to 1,000 locations
Franchised Units:976
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AI-Powered Due Diligence Analysis
Our advanced AI analyzes Franchise Disclosure Documents (FDDs) to identify potential risks and opportunities across 10 critical categories.
10
High Risk
Critical items
33% of total
18
Medium Risk
Monitor closely
60% of total
2
Low Risk
Manageable items
7% of total
30
Total Items
Factors analyzed
9 categories
6.33
Overall Score
Low RiskHigh Risk
010
Disclosure & Representation Risks
5 risks identified
1
3
1
Financial Performance Representations Reliance
High
Explanation:
- Item 19 may contain financial performance representations (FPRs) about existing franchisees. While potentially helpful, these are based on past performance and don't guarantee future success. Over-reliance on these figures without considering individual circumstances, market conditions, and management capabilities is a significant risk.
- Exhibit B contains audited financial statements of the franchisor. While this provides insight into the franchisor's financial health, it doesn't directly translate to franchisee profitability. A strong franchisor doesn't guarantee a successful franchisee.
Potential Mitigations:
- Carefully analyze Item 19, understanding the basis and limitations of any FPRs. Compare the data to industry averages and seek independent financial advice.
- Review Exhibit B to assess the franchisor's financial stability, but don't equate it with guaranteed franchisee profits. Focus on developing a realistic business plan with conservative projections.
- Conduct thorough due diligence, including speaking with existing franchisees about their actual financial results and experiences. Verify the information provided in the FDD.
FDD Citations:
- Item 19: Financial Performance Representations (if included)
- Exhibit B: Franchisor's Financial Statements
State Registration and Compliance
Medium
Explanation:
- Exhibit A lists state agencies responsible for franchise regulations. Operating in a state where the franchisor isn't registered or complying with specific state laws can lead to legal issues and penalties.
- The FDD mentions that Baskin-Robbins "may not yet be registered to sell franchises in any or all of these states." This creates uncertainty and requires careful verification of registration status in the prospective franchisee's state.
Potential Mitigations:
- Verify Baskin-Robbins' registration status with the relevant state agency listed in Exhibit A before signing any agreements.
- Consult with legal counsel specializing in franchise law to ensure compliance with all state-specific regulations.
FDD Citations:
- Exhibit A: List of State Agencies and Agents for Service of Process
Limited Information on Item 23 (Receipts)
Medium
Explanation:
- Item 23 only mentions a detachable acknowledgment of receipt. While seemingly minor, a lack of clarity on the receipt's purpose and content could lead to misunderstandings or disputes later.
Potential Mitigations:
- Request a copy of the receipt acknowledgment (Exhibit L) and review it carefully to understand its implications.
- Document all communications and ensure a clear understanding of what is being acknowledged upon signing the receipt.
FDD Citations:
- Item 23: Receipts
No Specific Earnings Claims Validation
Medium
Explanation:
- While the provided FDD excerpt doesn't include Item 19, if the full FDD contains earnings claims, it's crucial to understand how these were validated. Unverified or misleading earnings claims can create unrealistic expectations and lead to financial disappointment.
Potential Mitigations:
- If Item 19 includes earnings claims, scrutinize the basis of these claims. Ask the franchisor for detailed supporting documentation and independently verify the information.
- Consult with existing franchisees to understand their actual financial performance and compare it to any presented earnings claims.
FDD Citations:
- Item 19: Earnings Claims (if included in the full FDD)
Reliance on Franchisor's Audited Financials
Low
Explanation:
- Exhibit B provides the franchisor's audited financials. While this offers some insight into their financial health, it's important to remember these are historical figures and don't predict future performance. The franchisor's financial situation can change, impacting support and resources available to franchisees.
Potential Mitigations:
- Review the franchisor's financials carefully, paying attention to trends and any potential red flags. Consult with a financial advisor to understand the implications of the financial statements.
- Inquire about the franchisor's future plans and how they might impact franchisees. Understand the franchisor's long-term financial strategy.
FDD Citations:
- Exhibit B: Franchisor's Audited Financial Statements
Financial & Fee Risks
3 risks identified
1
2
No Exclusive Territory & Competition
High
Explanation:
- The FDD explicitly states that franchisees are not granted exclusive territories. This means multiple Baskin-Robbins franchises, including corporate-owned stores, can operate in close proximity, leading to direct competition and potential market saturation.
- Competition can also arise from other distribution channels, licensed products, and competitive brands controlled by the franchisor, further impacting potential revenue.
Potential Mitigations:
- Carefully evaluate the existing market density of Baskin-Robbins and other ice cream retailers in your desired territory. Conduct thorough market research to assess the potential customer base and competition levels.
- Negotiate with the franchisor for a clearly defined, albeit non-exclusive, primary market area. While full exclusivity may not be possible, a defined primary area can provide some level of market protection.
- Develop a strong local marketing strategy to differentiate your franchise from competitors. Focus on building customer loyalty through excellent service, unique promotions, and community engagement.
FDD Citations:
- Item 5: "You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution, from products we license, or competitive brands that we control."
Reliance on Franchisor's Data & No Independent Audit
Medium
Explanation:
- The FDD indicates that the Average Unit Volumes (AUVs) presented are based on data collected from franchisee sales reports and POS systems, which are not independently audited.
- This lack of independent verification raises concerns about the accuracy and reliability of the financial performance representations.
Potential Mitigations:
- Request written substantiation for the financial performance representations as offered in the FDD. Analyze the provided data carefully and compare it with industry benchmarks.
- Consult with an experienced accountant to review the financial information and assess the potential profitability of the franchise opportunity.
- Contact existing franchisees to discuss their actual sales and expenses. This can provide a more realistic picture of the financial performance potential.
FDD Citations:
- Item 19: "We have not independently audited that information. Prospective franchisees and sellers of franchises should be advised that no certified public accountant has audited these figures or expressed his or her opinion concerning their contents or form."
Variability of Sales & No Assurance of Success
Medium
Explanation:
- The FDD acknowledges that sales can vary significantly based on numerous factors, including location, competition, management quality, and market conditions.
- There's no guarantee that a new franchisee will achieve the same level of sales as existing restaurants, and the FDD explicitly states "Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much."
Potential Mitigations:
- Conduct a thorough site analysis to evaluate the suitability of the proposed location. Consider factors such as visibility, accessibility, demographics, and proximity to competitors.
- Develop a comprehensive business plan that addresses potential challenges and outlines strategies for maximizing sales and profitability.
- Seek guidance from experienced business advisors and mentors to improve your management skills and business acumen.
FDD Citations:
- Item 19: "A Baskin-Robbins Restaurant’s sales may vary depending on a number of factors…"
- Item 19: "Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much."
Legal & Contract Risks
5 risks identified
1
3
1
Waiver of Claims Limitation (Item 17)
Low
Explanation:
- Item 17 clarifies that franchisees cannot waive claims under state franchise laws, including fraud in the inducement, or disclaim reliance on franchisor statements. This is generally positive, protecting franchisees' rights.
Potential Mitigations:
- Review the specific language in Item 17 to ensure it aligns with your state's franchise laws.
- Consult with a franchise attorney to understand the implications of this clause in your specific situation.
FDD Citations:
- Item 17: "No statement...shall have the effect of (i) waiving any claims under any applicable state franchise law...or (ii) disclaiming reliance on any statement made by us..."
State-Specific Law Conflicts (Maryland Rider)
Medium
Explanation:
- The Maryland Rider introduces potential conflicts between the Franchise Agreement and Maryland Franchise Law regarding releases, insolvency, and governing law. The interplay of these provisions could create ambiguity and complicate dispute resolution.
Potential Mitigations:
- Carefully review the Maryland Rider and compare it to the main Franchise Agreement and Maryland Franchise Law. Identify any potential inconsistencies or ambiguities.
- Seek legal counsel specializing in Maryland franchise law to clarify the impact of the rider and ensure your rights are protected.
FDD Citations:
- Exhibit E - Maryland Rider: Sections 2 (Releases), 3 (Insolvency), 4 (Governing Law), 5 (No Release)
Insolvency Clause Enforceability (Maryland Rider)
Medium
Explanation:
- The Maryland Rider acknowledges that the insolvency clause in the Franchise Agreement might not be fully enforceable under federal bankruptcy law. This creates uncertainty about the franchisor's ability to enforce this provision in a bankruptcy scenario.
Potential Mitigations:
- Consult with a bankruptcy attorney to understand the potential implications of this limitation on the insolvency clause.
- Assess the franchisor's financial stability to gauge the likelihood of bankruptcy.
FDD Citations:
- Exhibit E - Maryland Rider: Section 3 (Insolvency)
Minnesota Non-Renewal Rights Complexity
Medium
Explanation:
- The Minnesota Rider references specific non-renewal rights under Minnesota law, adding complexity to the termination and renewal process. Understanding these specific state provisions is crucial for franchisees in Minnesota.
Potential Mitigations:
- Carefully review the Minnesota Rider and the referenced Minnesota statutes (Minn. Stat. § 80C.14) to fully understand your non-renewal rights.
- Consult with a franchise attorney specializing in Minnesota law to clarify any questions about these provisions.
FDD Citations:
- Exhibit E - Minnesota Rider: Section 2
Release Limitations Under State Laws (Various Riders)
High
Explanation:
- Several state riders (Maryland, Minnesota) explicitly limit the scope of releases in the Franchise Agreement to comply with state franchise laws. This highlights the importance of state-specific franchise regulations and the potential for conflicts between the general agreement and state laws. Failure to comply with these specific state laws can lead to significant legal issues.
Potential Mitigations:
- Carefully review all applicable state riders and compare them to the main Franchise Agreement. Identify any discrepancies or areas where state law supersedes the general agreement.
- Consult with a franchise attorney specializing in the relevant state law to ensure full compliance and understanding of your rights and obligations.
- Develop a clear understanding of how these limitations impact your ability to pursue claims against the franchisor.
FDD Citations:
- Exhibit E - Maryland Rider: Sections 2 (Releases), 5 (No Release)
- Exhibit E - Minnesota Rider: Section 1
Territory & Competition Risks
3 risks identified
2
1
No Exclusive Territory
High
Explanation:
- The FDD explicitly states that franchisees are not granted exclusive territories. This means multiple Baskin-Robbins restaurants (franchised or corporate-owned) can operate in close proximity, leading to direct competition and potential market cannibalization.
- This lack of territorial protection can significantly impact sales and profitability, especially in densely populated areas.
Potential Mitigations:
- Thoroughly research the existing and planned Baskin-Robbins locations in your target area before signing the franchise agreement.
- Negotiate with the franchisor for a clearly defined area of primary responsibility (APR), even if it's not formally exclusive, to understand their development plans.
- Focus on differentiating your restaurant through superior customer service, local marketing initiatives, and operational efficiency to stand out from competitors.
FDD Citations:
- Item 12: "You will not receive an exclusive territory. You also do not have any type of nonexclusive territory."
- Item 12: "You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control."
Competition from Other Channels
High
Explanation:
- Baskin-Robbins reserves the right to distribute its products through various channels, including supermarkets, online platforms, and other retailers. This can create competition for franchisees, especially for non-traditional sales like ice cream cakes and packaged products.
- These alternative channels may offer lower prices or greater convenience, potentially impacting in-store sales.
Potential Mitigations:
- Assess the prevalence and pricing strategies of Baskin-Robbins products in alternative distribution channels within your target market.
- Leverage the in-store experience by offering unique promotions, creating a welcoming atmosphere, and focusing on personalized customer service.
- Explore opportunities to collaborate with other local businesses or community organizations to drive traffic to your restaurant.
FDD Citations:
- Item 12: "We have the right to distribute (or license others to distribute) products identified by our trademarks… through any distribution methods or channels."
- Item 12: "These other sources of distribution could compete with you."
Competition from Other Brands
Medium
Explanation:
- The FDD mentions competition from "other channels of distribution or competitive brands that we control." While not explicitly detailed, this suggests that the parent company may operate or franchise other brands that could compete with Baskin-Robbins.
- This could lead to indirect competition for customers and market share.
Potential Mitigations:
- Research the parent company's portfolio of brands and their presence in your target market.
- Focus on Baskin-Robbins' unique selling propositions and strengthen brand loyalty within your local community.
- Monitor the competitive landscape and adapt your marketing and operational strategies accordingly.
FDD Citations:
- Item 12: "You may face competition from… other channels of distribution or competitive brands that we control."
Regulatory & Compliance Risks
3 risks identified
1
2
Compliance with California's Fast Food Act (AB 1228)
High
Explanation:
- The Fast Food Act (AB 1228) imposes significant new requirements on fast-food restaurants in California, including those related to wages, working hours, and working conditions. These requirements can substantially increase operating costs and create complex compliance challenges.
- The franchisor explicitly states they provide no training or assistance related to the Fast Food Act and do not charge fees for such services. This leaves the franchisee solely responsible for understanding and complying with this complex legislation.
- Non-compliance with the Fast Food Act can lead to substantial penalties, legal liabilities, and reputational damage.
Potential Mitigations:
- Consult with legal counsel specializing in California labor law to thoroughly understand the requirements of the Fast Food Act and its applicability to the specific franchise location.
- Develop comprehensive policies and procedures to ensure compliance with all aspects of the Fast Food Act, including wage and hour requirements, working condition standards, and record-keeping obligations.
- Implement robust training programs for all employees to ensure they understand and adhere to the new standards.
- Budget for increased labor costs and potential legal expenses associated with compliance.
- Monitor ongoing developments and amendments to the Fast Food Act to maintain compliance.
FDD Citations:
- Item 1: "To the extent it is applicable, you must comply with California Assembly Bill 1228..."
- Items 5, 6, and 11: "We currently do not provide any training or assistance related to... the Fast Food Act."
Evolving Regulatory Landscape for Fast Food Industry
Medium
Explanation:
- The Fast Food Act signifies a trend towards increased regulation of the fast-food industry. Other states or municipalities may enact similar legislation, creating further compliance complexities and cost increases.
- Changes in federal, state, or local laws related to food safety, labor practices, or environmental regulations could impact franchise operations and profitability.
Potential Mitigations:
- Stay informed about legislative and regulatory developments affecting the fast-food industry at all levels of government.
- Join industry associations and participate in advocacy efforts to influence policy decisions.
- Build flexibility into business operations to adapt to changing regulatory requirements.
- Consult with legal counsel specializing in franchise law and regulatory compliance to proactively address potential changes.
FDD Citations:
- Item 1: Reference to the Fast Food Act highlights the dynamic regulatory environment.
Responsibility for Interpretation and Application of Fast Food Act
Medium
Explanation:
- The FDD places the onus on the franchisee to determine the applicability of the Fast Food Act to their specific franchise. This requires legal interpretation and analysis, which can be complex and costly.
- Misinterpreting or misapplying the Fast Food Act can lead to significant legal and financial consequences.
Potential Mitigations:
- Seek expert legal advice to determine the applicability of the Fast Food Act to the specific franchise location and operating model.
- Document the legal analysis and interpretation to demonstrate good-faith efforts towards compliance.
- Engage in ongoing legal consultation to address any ambiguities or changes in interpretation of the Act.
FDD Citations:
- Items 5, 6, and 11: "It is solely your responsibility to determine whether the Fast Food Act applies to your franchise..."
Franchisor Support Risks
3 risks identified
3
Limited Ongoing Operational Support
Medium
Explanation:
- While Baskin-Robbins provides initial training and access to manuals, the ongoing operational support seems limited to updates, ongoing training, and an "advisory relationship" described as assistance "we periodically deem appropriate." This vague language raises concerns about the level of proactive support provided in addressing day-to-day operational challenges, particularly for new franchisees.
- The FDD mentions a franchisee advisory council, but its influence and effectiveness in advocating for franchisee needs are unclear.
Potential Mitigations:
- Thoroughly question the franchisor about the specifics of their ongoing support. Request concrete examples of how they assist franchisees with operational issues, marketing, and financial management.
- Speak with existing franchisees to gauge their satisfaction with the level of support received. Inquire about response times, problem-solving effectiveness, and the franchisor's proactive involvement in their business.
- Negotiate for more specific support provisions in the franchise agreement, if possible.
FDD Citations:
- Item 11: "Maintain an advisory relationship with you by providing such assistance as we periodically deem appropriate regarding the development and operation of a Baskin-Robbins Restaurant."
- Item 11: "Consult with the franchisee advisory council (or its successor) from time to time."
Site Selection and Approval Process Risk
Medium
Explanation:
- While the franchisee is responsible for finding a site, the franchisor has ultimate approval. The criteria are broad and subjective ("other factors"), giving the franchisor significant power. Disapproval could lead to delays and potentially losing a desirable location.
- The 60-90 day timeframe for notice to proceed after site submission could cause delays in the development schedule.
Potential Mitigations:
- Clearly understand the site selection criteria and discuss potential sites with the franchisor early in the process.
- Have backup site options ready in case the preferred site is rejected.
- Negotiate a shorter timeframe for site approval in the franchise agreement, if possible.
FDD Citations:
- Item 11: "You may only develop a Restaurant at a site that we have accepted."
- Item 11: "We generally issue a notice to proceed between 60 and 90 days after receiving the required information related to the proposed site."
Mandatory Refurbishments and Remodels
Medium
Explanation:
- The FDD mentions mandatory refurbishments and remodels at specified dates. The franchisor's control over the timing and scope of these updates could impose significant and unpredictable financial burdens on the franchisee.
- The lack of detail about the frequency, cost, and specific requirements of these updates makes it difficult to budget and plan for these expenses.
Potential Mitigations:
- Request detailed information about the typical frequency, scope, and cost of refurbishments and remodels. Obtain examples of past requirements and estimated future expenses.
- Negotiate for more predictable refurbishment/remodel schedules and cost limitations in the franchise agreement.
- Establish a reserve fund specifically for these future expenses.
FDD Citations:
- Item 11: "No later than the Refurbishment Dates and the Remodel Dates identified in the Franchise Agreement, you must refurbish and remodel the Restaurant in accordance with our then-current refurbishment and remodel Standards."
Exit & Transfer Risks
2 risks identified
2
Restrictions on Transfer and Sale in Minnesota
Medium
Explanation:
- The Minnesota Rider to the Franchise Agreement adds specific restrictions on the franchisee's ability to transfer or sell the franchise, as required by Minnesota law (Minn. Stat. § 80C.14). This could limit the franchisee's options for exiting the business and potentially impact the resale value.
Potential Mitigations:
- Carefully review the specific restrictions outlined in the Minnesota Rider and understand how they might affect your exit strategy. Consult with a legal professional specializing in franchise law in Minnesota to fully understand your rights and obligations.
- Develop a comprehensive business plan that considers various exit scenarios, including the possibility of not being able to sell the franchise as freely as in other states. Factor in the potential impact of these restrictions on your overall investment return.
FDD Citations:
- Exhibit E, Minnesota Rider, Section 2: "Minnesota law provides franchisees with certain non-renewal rights. In sum, Minn. Stat. § 80C.14 (subd..."
State-Specific Regulations Impacting Transfer
Medium
Explanation:
- The FDD includes several state-specific riders (e.g., Maryland, Minnesota) that modify the general franchise agreement. These riders often address state franchise laws that may impact transfer rights and procedures, creating complexities and potential variations in the exit process depending on the franchise location.
Potential Mitigations:
- Carefully review the specific rider for your state to understand any deviations from the standard franchise agreement regarding transfer and sale. Pay close attention to any clauses related to releases, estoppel, or waivers that might affect your rights upon exit.
- Consult with a franchise attorney licensed in your state to ensure compliance with local regulations and to understand how these regulations might impact your ability to transfer or sell the franchise.
- Consider the implications of state-specific regulations when evaluating potential franchise locations. Choose a location where the regulatory environment aligns with your long-term business and exit goals.
FDD Citations:
- Exhibit E: "THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENTS AND STORE DEVELOPMENT AGREEMENTS"
- Exhibit E - Maryland Rider, Minnesota Rider, etc.
Operational & Brand Risks
3 risks identified
2
1
Brand Damage from Inconsistent Quality
High
Explanation:
- Failure to adhere to Baskin-Robbins' standards and specifications for restaurant design, construction, equipment, and operations can lead to inconsistent product quality and customer experience across different franchise locations.
- This inconsistency can damage the brand's reputation and negatively impact customer loyalty.
Potential Mitigations:
- Thoroughly review and understand Baskin-Robbins' standards and specifications outlined in the manuals and other communications.
- Engage in regular communication with the franchisor to clarify any ambiguities and ensure compliance.
- Implement robust quality control measures at the franchise level to monitor product quality and service delivery.
- Actively participate in ongoing training programs provided by the franchisor to stay updated on best practices and operational procedures.
FDD Citations:
- Item 11: "The Restaurant and Premises must be designed, laid out, constructed, furnished, and equipped to meet our Standards and specifications…"
- Item 11: "You may not deviate from our approved plans, specifications and requirements without our prior written approval."
Operational Challenges due to Complex Systems
Medium
Explanation:
- Baskin-Robbins' operational systems, including digital, mobile, and technology equipment, can be complex and require specialized knowledge and training.
- Difficulties in understanding and managing these systems can lead to operational inefficiencies, errors, and increased costs.
Potential Mitigations:
- Invest in comprehensive training for all employees on the use and maintenance of Baskin-Robbins' systems.
- Establish clear operating procedures and protocols for managing technology and equipment.
- Seek ongoing technical support from the franchisor and utilize available resources.
FDD Citations:
- Item 11: Manual includes 97 pages on "Digital, Mobile, Technology Equipment."
Reputational Damage from Food Safety Issues
High
Explanation:
- Food safety incidents, such as contamination or improper handling, can severely damage a restaurant's reputation and lead to legal liabilities and financial losses.
- Failure to comply with food safety regulations and Baskin-Robbins' standards can result in significant negative consequences for the franchisee.
Potential Mitigations:
- Implement rigorous food safety protocols and training programs for all employees.
- Conduct regular inspections and audits to ensure compliance with regulations and standards.
- Establish a system for tracking and addressing food safety concerns.
FDD Citations:
- Item 11: Manual includes 62 pages on "Food Safety People."
Performance & ROI Risks
3 risks identified
2
1
Uncertain Sales Performance
High
Explanation:
- Item 19 discloses that AUVs are calculated based on unaudited sales reports and POS data from existing franchisees. This lack of independent verification raises concerns about the reliability of the presented figures.
- The FDD clearly states, "Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much." This disclaimer highlights the inherent uncertainty in replicating the provided AUVs.
- Numerous factors influence sales, including location, competition, management quality, and market conditions, making it difficult to predict individual franchisee performance.
Potential Mitigations:
- Request written substantiation for the financial performance representations as offered in the FDD.
- Conduct thorough independent market research to assess the local demand and competition in your target area.
- Develop a detailed business plan with realistic sales projections, considering various market scenarios.
- Interview existing franchisees to gain insights into their actual sales performance and operational challenges.
FDD Citations:
- Item 19: "We have not independently audited that information."
- Item 19: "Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much."
Net Profit Uncertainty
High
Explanation:
- Item 19 provides AUV figures but explicitly states that these figures do not account for cost of sales, operating expenses, or other costs necessary to determine net income or profit.
- Without a clear understanding of these costs, it's impossible to accurately project profitability, posing a significant risk to the franchise investment.
Potential Mitigations:
- Conduct a comprehensive independent investigation of all potential costs, including cost of goods sold, labor, rent, utilities, marketing, and royalties.
- Consult with experienced accountants or business advisors to develop realistic cost projections and profit margins.
- Interview existing franchisees to understand their typical cost structure and profit margins.
FDD Citations:
- Item 19: "These financial performance representations do not reflect the costs of sales, operating expenses or other costs or expenses that must be deducted from the AUV figures to obtain your net income or profit."
Franchisee Turnover
Medium
Explanation:
- Item 20, Table 1 shows a net decrease in franchised outlets over the past three years (2022-2024), indicating a degree of franchisee turnover.
- While the decline has slowed, the consistent negative net change warrants investigation into the underlying reasons.
Potential Mitigations:
- Carefully analyze Item 20, Table 3 to understand the reasons for terminations, non-renewals, and ceased operations.
- Interview existing and former franchisees to gain insights into their experiences and challenges.
- Assess the franchisor's support system and resources to determine their effectiveness in assisting franchisees.
FDD Citations:
- Item 20, Table 1: Net Change in Franchised Outlets for 2022 (-41), 2023 (-23), and 2024 (-2).
FDD Documents by Year
Download and view official Franchise Disclosure Documents
FDD Year: 2025
Uploaded: 8/9/2025
FDD Year: 2024
Uploaded: 8/25/2025
FDD Documents
Access and download Franchise Disclosure Documents by year