Almost fifty franchise executives and professionals turned out at Plante Moran in Southfield Tuesday evening.
Greg Longe, CEO of bizzie, announced the first-ever Franchising Management BBA accredited degree, offered at Northwood University. He spoke of the need for its support by our franchise community in the form of mentoring, teaching, philanthropy and internships. In attendance were advisory committee members Janet Muhleman and Lisa DiFalco from re:group, Moe Shrikian of Hungry Howie’s and Mark Fleischer of Plante Moran.
A panel presenting on the pros and cons of Financial Representations, Item 19 was led by Mark Fleischer and included Moe Shrikian, Lisa Manetta of Plante Moran and Gary Remer from Madden Hauser. Item 19 is the only optional item in the Franchise Disclosure Document (FDD). The franchisor has the option of stating potential earnings or can remain silent on the matter. Interesting to note that, five years ago, only 25% of franchisors opted to state potential earnings, whereas today, that number has climbed to 67%!
The panel addressed the definition of a Financial Performance Representation (FPR), requirements for the representation, how to structure it as historical or projected, how to use in advertising and public relations and, finally, “Moe’s Rules.” For a copy of the presentation, please contact Lisa Manetta at Plante Moran.
For information on the Franchise Business Network, an outreach of the International Franchise Association, please contact Carey Jernigan.