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.
Close
What’s A Franchise Information Memorandum?
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.
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Start your own World Options franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to World Options for further information!
Start your own Kaspa’s Desserts franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Kaspa’s Desserts for further information!
Start your own Dolce Desserts franchise
Yes
Find Out MoreN/A
We're sorry, this franchise is no longer seeking applicants.
Click here to find other Food & Beverage franchisesStart your own Dyno-Rod Plumbing franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Dyno-Rod Plumbing for further information!
Start your own Blossom Home Care franchise
Yes
Find Out More£800,000 turnover
Request Free Information
Send a free enquiry to Blossom Home Care for further information!
Companies to Consider
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Sales Geek: Behind the B2B franchise trying to start a sales revolution
Added 2 days ago | 2 min read
-
Reece Donnelly: The Apprentice star reveals big plans to recruit UK franchisees
Added 4 days ago | 2 min read
-
Burger Boi: The US-inspired burger chain taking on the UK fast food market
Added one week ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news