What is a franchise prospectus?

A franchise prospectus or franchising prospectus is the marketing material provided to promote your franchise to prospective franchisees. Usually this information will be sent immediately following an enquiry and whilst it does not contain full details of the business and legal agreements it needs to contain enough information to inform prospective franchisees so they understand the business, investment and potential rewards. Some elements usually included in a franchise prospectus include;

  • Background & history of the business
  • The business market sector including value, opportunity & USP
  • Franchise investment – What the investment is and what is provided
  • Returns including any case studies of the existing business and/or franchisees
  • Franchise training & support
  • Initial & ongoing fee structures
  • The recruitment process, next steps

The franchise prospectus play a vital role in franchisee recruitment plus also forms a strong part of your initial representation to prospective franchisees so whilt of course it needs to be attractive as a sales tool careful review is vital to ensure all representations are accurate.

To find out more about how to create a great franchise prospectus for your franchise arrange a free consultation with one of our franchising experts

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