How Much Money Can I Make If I Buy This Franchise?!
Shear Madness Haircuts for Kids
Corporate Headquarters for Shear Madness Franchising, LLC
Franchisors are given lots of leeway when it comes to earnings claims in their Franchise Disclosure Document. Most FDD's are broken?up into 23 different items but none more important?than the Item 19. Some call it their Financial Performance representation or FPR, some call it earnings claims, some just call it Item 19, I just call it one of?the most important items in the document.??
??I would like to take a minute to discuss?that leeway thing. Not only does the FTC not monitor?or audit these claims, but they don't even require a franchise to have one in their agreement! That's right! A simple, "we choose not to disclose our numbers at this time" will suffice. This lack of transparency is a red flag, would you buy a business?when?you don't know potentially what you can make??
??At Shear Madness we recognize the direct correlation of the success of franchisees and the success of the brand, which is why we include an Item 19 in our FDD. There are two T's that are important?to a successful franchise brand, Trust and Transparency, we believe that including an Item 19 is the first step in a successful franchisor/franchisee relationship.