The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
What kind of financial information should I look for when investigating a franchise opportunity?
Firstly, you must be wary of any information that is being provided to you by a franchisor. Not because franchisors are inherently dishonest, but they are keen to recruit franchisees and will undoubtedly paint a rosier picture of their franchise than perhaps the situation actually merits. In other words, you must carry out your own research. The bfa’s code of ethics does impose obligations on franchisors to provide you with ‘full and accurate written disclosure of all information material to the franchise relationship’. Further, the guide to the ethics of franchising requires the franchisor to provide a prospective franchisee with a set of its latest certified balance sheet and profit and loss accounts, which should be dated not more than 12 months prior to the date they are handed to the franchisee. The franchisor should also provide the franchisee with a statement to the effect that there has been no decline in its financial position since the date of the accounts. Finally, the franchisor should confirm that it has never had any action taken against it in consequence of debts, save for any genuine disputes to which it was advised that it had at least an arguable case.
You might also be interested in
Answered by Shelley Nadler
Shelley Nadler writes: Yes. It’s usual for the franchisor to demand the same qualifications and standards for... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: It’s quite common for two friends to go into business together and the mechanism... read more
Answered by John Pratt
John Pratt writes: There’s a view that if a franchise works in a franchisor’s home country, it... read more
Answered by Louise Harris
Louise Harris writes: Start your research ahead of your attendance. Make the show guide your key resource... read more
Exciting Franchise Opportunities
Companies to Consider
£120,000 net profit
Not Just Travel
The Massage Company
Yes, via high street banks
Profit of £50,000 and increasing thereafter
In house and high street banks
Just Shutters Business
£50,000 – £100,000 profit
Third party sources
£2,000+ per week (as per 2019)
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added 5 hours ago | 2 min read
Added 3 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news