Financial Performance Representations vs Audited Financial Statements

The franchise development process makes mention of two financial concepts: Audited Financial Statements and Financial Performance Representations. Often times these two topics lead to confusion. Audited Financial Statements and Financial Performance Representations are two different things. Let’s start off with a definition of each. Audited Financial Statements Audited Financial Statements are statements that are prepared…

Franchising: Showing Financials to Prospective Franchisees

Do I need to show my financials to prospective franchisees?  The topic of “financials” often creates confusion to just about anyone, and unavoidably, the franchise industry is not free from this mystification. To understand the role of financials in franchising, we need to understand a bit of background information. An Entity is Born When you…

Franchise Myth: A Business Needs to Show Financials to Franchise

The topic of financials is an area of misconception that surrounds franchising and continues to confuse people. In fact, there is a franchise myth out there that you need three years of financials in order to franchise. Let’s cover some background information and understand what financials you need when franchising a business. To start, remember…