Steve Beagelman, president and CEO of SMB Franchise Advisors advises franchisors to be wary of making a FDD too strict.
For any emerging franchise, making sure to be buttoned up on the legal side will be key to long-term success and avoiding stressful problems. In the "Living Large" section of a recent issue of Franchise Times, they looked at how brands can use data and keep records for long-term success. However, Steve Beagelman, president and CEO of SMB Franchise Advisors, warned that dropping to heavy of a legal hammer in the FDD in the early stages can stifle growth.
"You want to have clauses in the contract that protect you as the franchisor and if you are an emerging brand, you need protection rights. But if you make it too strict of a document, you might not get those first franchisees to sign up," Beagelman told Franchise Times.
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