Prospective franchisees usually have a lot of questions that needs answering from the franchisor. From capital requirements to training, marketing and operational assistance, franchisors are expected to be able to provide ready-made solutions to these aspects.
However, at the end of the day, it is down to one question that needs to be answered before prospective franchisees put any serious consideration into taking things further — how much money can the business make?
For a franchisor to answer this question, there really is only one way — sharing the business’ financial performance. While this may open up doors for a potential lawsuit if things don’t go well for the franchisee (they may think an unrealistic scenario was misrepresented to them), it does address the fundamental concern for every investment decision.
When a franchisor provides information related to financial performance, it does go a long way in managing expectations, ensuring the prospective franchisee isn't going in with false hopes or impressions.