🍟 4/16/2024 – Understanding FDDs
FROM THE WOLF DEN
1) Everything To Know About FDD’s
Given it is FDD season – and I’ve been sharing the updated financial and growth data of various brands for the past month or so (Crumbl, Chick-Fil-A, Dave’s Hot Chicken, etc.), I figured it’d be a good time to revisit this long-form article I wrote about FDD’s.
It gives the full context on what an FDD is, why they exist, and gives a quick blurb breakdown on every section of the document, so you can understand what they’re all about.
If you’re serious about buying a franchise, you will of course get legal help (or so I hope) from a franchise attorney before making a decision.
But, understanding at least on a basic level how to navigate an FDD will help you immensely!
Click here to read the full article.
2) Podcast AMA Questions
I’ll be recording a podcast in the next week that answers questions from you – the audience – on all things franchising.
Have any burning questions about a specific brand? The franchise buying process? Anything else?
Hit reply to this email and I’ll answer them in detail on the pod!
3) Yeti
Last week, it was announced that Yeti just opened a flagship store in New York City.
It’s a massive two-story, 6,000 square-foot storefront that’s right across from Madison Square Park. For those not familiar with NYC real estate, that is a prime location.
While Yeti is not a franchise, their success is still a fascinating case study that any entrepreneur should take note of.
They started in 2006 as a company just selling water coolers at 10x the price of any of their competitors.
Given their pricing model, I’d imagine they received tons of early criticism that their business model would never work. But the founders knew quality was needed, and that people would be willing to pay for it.
Today, because they stuck to their strategy, Yeti is a roughly $3.5 billion dollar brand!
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Short Wolf Report today, I’ll be back on Thursday with a breakdown on a home services brand that has an average revenue that is 4x higher than the initial investment 👀
EXTRA SAUCE 💥
This is a Wolf Original where I break down the basics of why diners are judged by a different set of rules, and seem to be immune to every threat the rest of the restaurant industry has to face.
Dog Bar Brand Pups Pub Puts Franchising on Tap :
Canine-friendly bars are emerging in the United States, and a Florida-based brand launched a franchise system to get ahead of the curve. Husband-and-wife entrepreneurs Alex Wright and Sheila Suhar founded Pups Pub, an off-leash indoor and outdoor dog sports bar, in 2020.
Gong Cha Makes Switch to Direct Franchising to Fuel U.S. Development
Bubble tea concept Gong Cha is changing its growth strategy in the United States. Accustomed to growing through master franchise agreements, the brand is pivoting to direct franchising to saturate the market.
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