So then. Given your alliance with the Franchise Brokers Association who claims businesses they attempt to broker are vetted by you and your organization have you analyzed all of the data you speak of here for each and every of the franchises they offer up? Your site indicates the option to "speak with an expert" meaning a franchise broker from the Franchise Brokers Association. I imagine, as well, that you are affiliated with more than just this particular brokerage firm as a means of monetizing your site. This is a sincere comment and only meant to clarify. Thanks.
We have reviewed 2021 and 2020 FDDs for 2,000+ franchises. This includes brands on the Franchise Broker Association platform. By having a franchise on Vetted Biz, it is not an endorsement of the brand, rather a means for franchise buyers to compare key metrics across opportunities. And for franchise brokers/ consultants to better educate the public on opportunities backed by data.
So based on your comment to me your preference is to have me “unsubscribe” rather than ask you challenging questions relative to your platform and franchise broker alignments? Surely that isn’t your response to those who use your comment section to comment, or is it?
@@kimperrotta3212 It appears you are the original founder of Franchise Brokers Association's competitor, IFPG. Now I can better understand the context of your question. We have not spoken to each franchisor and multiple franchisees of all franchises offered by Franchise Brokers Association. To complete the due diligence as described in the video, these conversations are essential. Also, it would require nearly monthly update calls with every single franchisor and multiple franchisees. A franchise candidate should go through this process as part of the evaluation of any franchise. The candidate should not rely on the franchise broker solely to complete this work. The investor is the one who ultimately has to live with the investment decision. We make it easier to go through the majority of the due diligence with data taken from the FDD. But to complete the due diligence, the franchise candidate MUST speak to the franchisor and we recommend 3-5+ franchisees. Do you have any suggestions of how we can better support Franchise candidates with metrics/ data?
@@Vettedbiz It's good to see you did a bit of research and have now composed yourself rather than have told me to unsubscribe. Let's review, shall we? First, it shouldn't "appear" to you that I am an original founder of the IFPG when in fact I am. Your research should have easily demonstrated this to you. I'll add, however, that my status is "Emeritus". Second, I personally do not see the Franchise Brokers Association, with whom you're aligned, as being a competitor. If you've done the research your purport to do you'd know there are likely now well over four thousand franchise offerings in the United States alone. If you believe for a single moment that the Franchise Brokers Association could possibly represent that large a number you don't understand the true nature of competition. There are multiple Broker Associations such as FranNet, TES, FranServe, and on and on. Far too many to mention here. Do the research and you'll come to know the number. As I mentioned in a recent blog post there are several nuggets of information you provide that are actually quite good. To claim to have researched over 2000 FDD's however is stretching it a bit. If you mean to say you have extrapolated the data from readily available FDD's and consider it research, fine. If you use the metrics from those very same FDD's to make claims relative to your opinion of their validity and appropriate investments or not that's also fine. To claim, however, that you have "Vetted" some 2000 plus franchises you've reviewed is another story entirely. As a relative upstart in the franchise space using the talking points of various franchise organizations or the space itself doesn't bode well for assisting your validity but only serves those of us who follow franchising in knowing that it's precisely what you're doing. Generally, speaking with 3-5+ Franchisees is not nearly enough. Prospective Franchisees should speak with as many as 10 "current" Franchisees and as many former Franchisees, they can contact. They should also NEVER use a list provided by the franchisor for these calls and only use the published information in the FDD and more if they can obtain it. Last, a prospective Franchisee will typically get only extremely biased information from the franchisor and, unfortunately, unbalanced information from "some" franchise brokers, whether part of an organization or independent, who know only what they read from an inventory of franchise portfolios or a review of franchise web sites. Mind you, I say "some", not all. To your last point and question about suggestions, I'd write this. A "Vetted" franchisor is a franchisor who has been thoroughly reviewed by competent FRANCHISEE centric attorneys and competent FRANCHISEE centric accountants who have a complete understanding of what the metrics and data really mean and have expressed these opinions in their respective official capacities. Any other metric or data to be relied on should be considered superficial and an overview, not an appropriate "vetting" of a franchise opportunity. In closing @Patrick Findaro, I find the information your monetized company provides to be helpful, and I'm sure appreciated by many...as it should be. My critique is primarily associated with sites that may provide the kind of information that may be misleading, biased, and appear to be endorsements. Couple that with an alignment with those that you indicate are "experts" tells me that you probably require a deeper understanding of broker organizations, their people, and precisely what it is they do. Having hobnobbed with a group with whom you've provided free access to your site for its members, as it would be for any group, shouldn't be considered or referred to as experts. All organizations have the good and the bad, some with considerable expertise and some without. I wish you all the best as you continue to sort out your business model with an eye on continuous improvement. There is nothing I've said to you that should have you tell me to unsubscribe. As the saying goes..."if you can't take the heat..." All the best for a productive, healthy, and prosperous New Year.
@Kim Perrotta Thanks for the feedback. We want to improve the information we provide and through your experience you bring great insights! I agree that a franchise attorney and accountant are key to the process (this should have been included in the video). These professionals also do not have a conflict of interest with earning compensation from the franchisor as do Franchise Brokers. The more conversations with existing and past franchisees the better. We are definitely aware that Franchise Broker networks represent a small portion of franchises (generally no more than 500) and many brands we've conducted videos on like Jersey Mike's, Burger King, Dominos and McDonald's do not compensate Franchise Brokers. I do not think the portion is as small as you suggest though... I imagine we can agree there are 4,000+ franchise brands currently OPERATING in the U.S. However, I strongly disagree that there are 4,000+ franchises currently being OFFERED in the U.S. Could you cite a source for that number of 4,000 franchise offerings? We estimate that no more than 3,000 franchises are currently being offered including business opportunities marketed as franchises but not complying with FTC regulations. As far as the term 'vetting', we believe there are varying degrees of 'vetting' and it can mean different things to different people. By no means should the information we provide be 100% relied upon to make a franchise investment. Our initial vetting can help weed out better from worse franchise options and is a good start to the franchise discovery process.
Hey
Please can you make video with detail on investment, starting and opening a franchise of
Halal Munchies
We'll add to the list!
Super great info as usual!!!
Glad you think so!
So then. Given your alliance with the Franchise Brokers Association who claims businesses they attempt to broker are vetted by you and your organization have you analyzed all of the data you speak of here for each and every of the franchises they offer up? Your site indicates the option to "speak with an expert" meaning a franchise broker from the Franchise Brokers Association. I imagine, as well, that you are affiliated with more than just this particular brokerage firm as a means of monetizing your site. This is a sincere comment and only meant to clarify. Thanks.
We have reviewed 2021 and 2020 FDDs for 2,000+ franchises. This includes brands on the Franchise Broker Association platform. By having a franchise on Vetted Biz, it is not an endorsement of the brand, rather a means for franchise buyers to compare key metrics across opportunities. And for franchise brokers/ consultants to better educate the public on opportunities backed by data.
So based on your comment to me your preference is to have me “unsubscribe” rather than ask you challenging questions relative to your platform and franchise broker alignments? Surely that isn’t your response to those who use your comment section to comment, or is it?
@@kimperrotta3212 It appears you are the original founder of Franchise Brokers Association's competitor, IFPG. Now I can better understand the context of your question.
We have not spoken to each franchisor and multiple franchisees of all franchises offered by Franchise Brokers Association. To complete the due diligence as described in the video, these conversations are essential. Also, it would require nearly monthly update calls with every single franchisor and multiple franchisees.
A franchise candidate should go through this process as part of the evaluation of any franchise. The candidate should not rely on the franchise broker solely to complete this work. The investor is the one who ultimately has to live with the investment decision.
We make it easier to go through the majority of the due diligence with data taken from the FDD. But to complete the due diligence, the franchise candidate MUST speak to the franchisor and we recommend 3-5+ franchisees.
Do you have any suggestions of how we can better support Franchise candidates with metrics/ data?
@@Vettedbiz
It's good to see you did a bit of research and have now composed yourself rather than have told me to unsubscribe. Let's review, shall we?
First, it shouldn't "appear" to you that I am an original founder of the IFPG when in fact I am. Your research should have easily demonstrated this to you. I'll add, however, that my status is "Emeritus".
Second, I personally do not see the Franchise Brokers Association, with whom you're aligned, as being a competitor. If you've done the research your purport to do you'd know there are likely now well over four thousand franchise offerings in the United States alone. If you believe for a single moment that the Franchise Brokers Association could possibly represent that large a number you don't understand the true nature of competition. There are multiple Broker Associations such as FranNet, TES, FranServe, and on and on. Far too many to mention here. Do the research and you'll come to know the number.
As I mentioned in a recent blog post there are several nuggets of information you provide that are actually quite good. To claim to have researched over 2000 FDD's however is stretching it a bit. If you mean to say you have extrapolated the data from readily available FDD's and consider it research, fine. If you use the metrics from those very same FDD's to make claims relative to your opinion of their validity and appropriate investments or not that's also fine. To claim, however, that you have "Vetted" some 2000 plus franchises you've reviewed is another story entirely.
As a relative upstart in the franchise space using the talking points of various franchise organizations or the space itself doesn't bode well for assisting your validity but only serves those of us who follow franchising in knowing that it's precisely what you're doing. Generally, speaking with 3-5+ Franchisees is not nearly enough. Prospective Franchisees should speak with as many as 10 "current" Franchisees and as many former Franchisees, they can contact. They should also NEVER use a list provided by the franchisor for these calls and only use the published information in the FDD and more if they can obtain it. Last, a prospective Franchisee will typically get only extremely biased information from the franchisor and, unfortunately, unbalanced information from "some" franchise brokers, whether part of an organization or independent, who know only what they read from an inventory of franchise portfolios or a review of franchise web sites. Mind you, I say "some", not all.
To your last point and question about suggestions, I'd write this. A "Vetted" franchisor is a franchisor who has been thoroughly reviewed by competent FRANCHISEE centric attorneys and competent FRANCHISEE centric accountants who have a complete understanding of what the metrics and data really mean and have expressed these opinions in their respective official capacities. Any other metric or data to be relied on should be considered superficial and an overview, not an appropriate "vetting" of a franchise opportunity.
In closing @Patrick Findaro, I find the information your monetized company provides to be helpful, and I'm sure appreciated by many...as it should be. My critique is primarily associated with sites that may provide the kind of information that may be misleading, biased, and appear to be endorsements. Couple that with an alignment with those that you indicate are "experts" tells me that you probably require a deeper understanding of broker organizations, their people, and precisely what it is they do. Having hobnobbed with a group with whom you've provided free access to your site for its members, as it would be for any group, shouldn't be considered or referred to as experts. All organizations have the good and the bad, some with considerable expertise and some without.
I wish you all the best as you continue to sort out your business model with an eye on continuous improvement. There is nothing I've said to you that should have you tell me to unsubscribe. As the saying goes..."if you can't take the heat..."
All the best for a productive, healthy, and prosperous New Year.
@Kim Perrotta Thanks for the feedback. We want to improve the information we provide and through your experience you bring great insights!
I agree that a franchise attorney and accountant are key to the process (this should have been included in the video). These professionals also do not have a conflict of interest with earning compensation from the franchisor as do Franchise Brokers.
The more conversations with existing and past franchisees the better.
We are definitely aware that Franchise Broker networks represent a small portion of franchises (generally no more than 500) and many brands we've conducted videos on like Jersey Mike's, Burger King, Dominos and McDonald's do not compensate Franchise Brokers.
I do not think the portion is as small as you suggest though...
I imagine we can agree there are 4,000+ franchise brands currently OPERATING in the U.S.
However, I strongly disagree that there are 4,000+ franchises currently being OFFERED in the U.S.
Could you cite a source for that number of 4,000 franchise offerings? We estimate that no more than 3,000 franchises are currently being offered including business opportunities marketed as franchises but not complying with FTC regulations.
As far as the term 'vetting', we believe there are varying degrees of 'vetting' and it can mean different things to different people.
By no means should the information we provide be 100% relied upon to make a franchise investment.
Our initial vetting can help weed out better from worse franchise options and is a good start to the franchise discovery process.
How to calculate failure rate %?
www.vettedbiz.com/glossary-term/failure-rate/