Home
Questions
What’s A Franchise Information Memorandum?

Q.

What’s A Franchise Information Memorandum?

Author: John Pratt

answered by John Pratt

Senior Partner at Hamilton Pratt

A franchise information memorandum is a term used by some involved in franchising to describe a prospectus that’s made available to someone who enquires about taking a franchise.

It doesn’t make sense for franchisors to provide a tailored document for each enquiry, so they prepare a standard document containing all the information they believe a prospective franchisee would be interested to have.

This means a FIM will contain information about the history of the franchisor’s business, individuals involved, number of franchise businesses in existence, what makes the franchise special and will also contain financial information.

It’s the financial information element of a FIM that frequently causes issues for franchisors. Inevitably, franchisors want to paint as positive a financial picture as possible about their business and therein lies the danger.

Whenever financial information about start-up costs, turnover, profit margins and so on are provided, they need to be based on the average performance of franchisees or the franchisor’s performance if, at the time, there are no franchisees.

John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.

Helen Doron Educational Group

Education programmes coming to the UK

Pingu’s English

Premier is one of the UK’s top sports and fitness education providers for young people, working with schools and...

Wall Street English

Have fun running your own business with a Boogie Beat music and movement franchise opportunity.

Debonair Languages

Debonair Languages provides translation, interpretation, transcription and transcreation services to a range of...

A children’s enrichment franchise that uses LEGO to provide fun and exciting educational play experiences

Interactive classes involving singing, dancing and playing for babies and pre-school children

Stagecoach Performing Arts

Specialises in teaching children to sing, dance and act, helping them to perform to their full ability in life

Angela’s Swim School

Angela’s Swim School teaches people of all ages and abilities to swim

The Cook Stars franchise is a 'cookery class and party' business, which is expanding rapidly throughout the UK

Fun Fest Holiday Club

Earn a fantastic return for operating a high quality, Ofsted registered holiday club for 11 weeks per year. We’re...

Want to be your own boss? Start today!

Relooking

Relooking is a beauty franchise, offering a variety of skin care and anti-aging treatments... find out more
- Retail
£18,000 Minimum Investment

Relooking From £18,000
Sweets and Treats Vending

Sweets and Treats Vending is a confectionery distribution franchise company... find out more
- Work From Home
£9,950 Minimum Investment

Sweets and Treats Vending From £9,950
SuperGreen Solutions

SuperGreen Solutions is an advisor, supplier, and installer of energy-efficient solutions to… find out more
£178,000 Minimum Investment

SuperGreen Solutions From £178,000
Wikane

Wikane is a business development franchise, specialising in working with SMEs to help them… find out more
£38,000 Minimum Investment

Wikane From £38,000

You have pending

More from our business portfolio