If you’re interested in becoming your own boss and learning more about how a franchise restaurant opportunity could make that happen, a B.GOOD franchise is a good place to start. We’re committed to providing all our franchisees with not only a unique business model backed by training and support, but also a completely transparent franchise process. And in no better place is that reflected than in our Franchise Disclosure Document (FDD), a very important legal document that explains in depth who we are and what becoming a B. GOOD franchise owner entails.
What is an FDD?
An FDD is a core document that’s required by law to be made available to every potential franchisee. The goal of our FDD is to provide buyers with vetted and validated information that can be used to make an educated decision about the B.GOOD company and our franchise restaurant opportunity. Potential franchisees must be allowed two weeks to familiarize themselves with a company’s FDD before anything can be signed. And because FDDs are meant to cover a lot of bases, they can sometimes be difficult to get through. But there are three items you should always make sure to read in any company’s FDD before making any decision. Let’s look at them.
What is the History of the Franchise?
We’ve been providing fresh, sustainable food in a fast-casual environment since 2004, and that history is outlined in detail in our FDD. The history section of any FDD looks specifically and thoroughly at how the franchise came to be, who the major players are behind it, including the founder and management team, and what the operational history is. While reading through this section you’ll want to watch for red flags like inflated resumes and limited work experience on the part of corporate leaders and management. You’ll also want to look for any repeated history of litigation or bankruptcies.
What Will It Cost to Become a Franchisee?
In many ways, this is the most important section of any FDD because it affects you the most immediately and directly. This section will list initial fees associated with becoming a franchisee, including the franchise fee itself, multi-unit fees, and necessary supplies and materials. It will also disclose any ongoing fees you’ll be responsible for, including monthly royalty and marketing fees. All our franchisees pay a 5% royalty fee and a 1.5% advertising fee from gross sales numbers. Your overall investment in a B.GOOD franchise restaurant opportunity will go toward constructing your restaurant, purchasing furnishings and fixtures, as well as providing you with the equipment you’ll need to run your franchise day to day.
What Kind of Support Will a Franchisee Receive?
This third very important section of any FDD will describe the kind of support you’ll receive as a franchisee, as well as share critical information about supply sources and operational items. It will outline the training and ongoing assistance you’ll receive, before, during and after you open, and provide details regarding copyrights and the intellectual property of the business, among other things. This section is especially important because it is the basis for royalty fees, which are used to pay for your ongoing support.
Remember, an FDD is there to protect both franchisee and franchisor. If you would like to learn more about how our FDD is an important part of a B.GOOD franchise restaurant opportunity, contact us today!