Congratulations! You finally finished your Franchise Disclosure Document (FDD). What a huge accomplishment!
For most founders, this marks the point where all of those years of grit and grind have ultimately culminated in preparing your business for the next phase of franchise development. Completing the FDD should be a huge sigh of relief, but the next big question will quickly start to loom in the back of your mind…
Now what?
The Franchise Disclosure Document (FDD) provides prospective franchisees with standardized information they need to evaluate the franchise opportunity before making an investment decision in your brand. It includes information about your company, franchise fees, financial obligations, litigation history, training, and other required disclosures so candidates can make an informed decision before investing.
One thing we’ve consistently observed at Franchise FastLane is that completing the FDD answers one set of questions while creating a whole new set. That’s where franchise development begins.
If you’re still learning how the franchising process fits together, check out our How to Franchise Your Business Guide.
We always recommend working with a qualified franchise attorney to prepare your FDD. That legal work establishes the foundation your franchise system needs before you begin offering franchises. After this step, your focus should shift to franchise development and getting your business ready to grow.
The truth is, completing the FDD changes where a founder’s attention is needed the most.
If you’d like a deeper breakdown of the document itself, read What Is the Franchise Disclosure Document (FDD)?
Franchise Development Changes the Role of the Founder
Running a single business and growing a franchise system are two very different roles.
Before franchising, founders usually focus just on their own business. But franchise development brings in a whole new group of people who compete for your time and attention. Prospective franchise owners want a clear understanding of what franchise ownership with your brand looks like.
Instead of focusing on legal documents and registrations, founders begin spending more of their time educating prospective franchise owners about the opportunity. As interest in your brand continues to grow, you’ll quickly see the benefit of having a consistent franchise sales process to educate and qualify each candidate.
Research Starts Before the First Discovery Call
In today’s day and age, by the time candidates schedule a discovery call, they’ve usually done their homework already.
Knowing this changes what your first discovery call should look like.
Instead of introducing your business from scratch, founders like you need to use those first few meetings to fill in all of the details that candidates couldn’t possibly find out for themselves and determine whether both parties still want to keep moving forward.
The fact of the matter is, most qualified candidates have already spent time getting familiar with your brand before they ever reach out to you. By the time you have that first conversation, you’re really just building on what they’ve already learned.
If you’re looking for ideas on attracting qualified franchise candidates before that first conversation, read our article on Franchise Sales Lead Generation.
Consistency Becomes One of the Most Valuable Systems You Build
Handling a few franchise candidates is very different from managing a full pipeline.
Franchise candidates move through the process at different times. You might have a discovery day coming up as new inquiries continue to arrive. Meanwhile, current franchise owners still need support. Daily business responsibilities continue as well.
Many franchisors soon realize that tracking every candidate is just as important as finding new ones.
Without a consistent franchise development process, the candidate experience can become inconsistent while unnecessary work starts piling up for the franchisor. A repeatable franchise sales process makes franchise development easier to manage as the franchise system grows.
If you’re interested in how successful franchisors structure their franchise sales process, read Franchise Sales Done Right: Our Proven Process for Healthy Growth.
Choosing the Right Franchise Development Model
No two franchisors reach this stage in exactly the same way.
Founders often begin by handling franchise development themselves. As the franchise system grows, many find that franchise development requires more time and attention than they can realistically devote to it. How franchise development fits into the business often depends on the leadership team’s priorities and available capacity.
Franchise FastLane works with founders at different stages of the franchisor journey because every franchise brand reaches this point differently.
Some founders are still preparing to franchise. Others have an active FDD and want to build their own franchise sales process. Some are ready to hand franchise sales over to an experienced team so they can focus on leading the business.
That’s why Franchise FastLane offers three services designed for different stages of franchise development.
Franchise Creator helps founders who are preparing to franchise understand what comes next before franchise sales begin.
CarPool supports franchisors with an active FDD who want to handle franchise sales themselves. The program helps founders build an organized franchise development process while keeping franchise sales in-house.
FastLane provides outsourced franchise development for franchisors with an active FDD who want an experienced team leading their franchise sales efforts. That allows founders to stay focused on operations and franchisee support while Franchise FastLane manages the franchise sales process.
Whether you’re preparing to franchise, building an internal franchise sales process, or looking for outsourced franchise development, the right model depends on where your business is today and where you want it to go next.
The First Franchise Owner Often Changes the Franchise System
Signing your first franchise agreement is another big milestone for your business.
A new franchise owner has put their trust in your brand and committed to building a business with your name.
Opening your first franchised location gives founders their first opportunity to put the franchise system into practice.
You’ll review your training materials again. Working with your first franchise owner often reveals opportunities to strengthen onboarding, support, and communication. Small improvements made during those first months frequently shape the experience for future franchise owners.
Leaders also start hearing new perspectives.
Franchise owners often provide valuable feedback about their franchise development experience. Those insights can help strengthen the process for future franchise owners.
As more candidates begin asking about financial performance, it’s also helpful to understand how Item 19 works and when Financial Performance Representations may be included in the FDD. Our article, Item 19 FDD Explained, provides a complete breakdown.
So, What Comes After the FDD?
Finishing the FDD gives your business the legal foundation it needs to start offering franchises.
What comes next is building a franchise development process that works for your business and your long-term goals.
Every franchise brand takes a different approach. Some founders manage franchise development themselves. Others build internal capabilities through coaching. Some decide to partner with a franchise sales organization that specializes in franchise development.
Since 2017, Franchise FastLane has helped emerging franchisors navigate this stage of growth by providing franchise development expertise, franchise sales support, coaching, and strategic recommendations that help brands build healthy, scalable growth.
If your FDD is complete and you’re ready for the next step, we’re here to help.
Want to see the franchise brands we’ve partnered with? Visit our Brands page.
Looking for more franchising resources? Browse our Blog.
Ready to talk through your franchise development goals? Contact Franchise FastLane to schedule a conversation with our team.
FAQs
What should I do after completing my Franchise Disclosure Document (FDD)?
After your FDD is complete, the focus shifts from legal preparation to franchise development. The next challenge is building a franchise sales process that fits your business and the way you want your franchise system to grow.
What is a franchise development process?
A franchise development process is the series of steps that takes someone from learning about your brand to becoming a franchise owner. While every franchisor’s process looks a little different, the goal is the same: helping qualified candidates make an informed decision while giving the franchisor a consistent way to manage franchise sales.
What's the difference between franchise development and franchise sales?
Franchise development is all the work that goes into growing a franchise system. Franchise sales are one part of that work and focus on helping prospective franchise owners move from their first conversation to signing a franchise agreement.
Can I manage franchise development myself?
Yes. Many founders handle franchise development themselves when they’re first getting started. As the franchise system grows, some continue building an in-house franchise sales process while others choose coaching or outsourced franchise development support.
When should I hire a franchise development company?
Every brand is different. Many founders begin looking for outside support when franchise development starts competing with daily operations, franchisee support, and other leadership responsibilities.
How important is the franchise sales process?
A consistent franchise sales process helps every qualified candidate receive the same information, understand the opportunity, and move through the buying journey in an organized way. It also makes franchise development easier to manage as the franchise system grows.
Does completing my FDD mean I'm ready to sell franchises?
Completing the FDD gives your business the legal foundation to begin offering franchises. From there, many franchisors focus on building their franchise development process, preparing marketing materials, and establishing a consistent franchise sales process before actively pursuing franchise candidates.
What is Item 19 in the FDD?
Item 19 is the Financial Performance Representation section of the Franchise Disclosure Document. If included, it provides certain financial performance information that prospective franchisees can use when evaluating the franchise opportunity. Learn more in our Item 19 FDD Explained article.
How long does franchise development take?
Since 2017, Franchise FastLane has worked with emerging franchisors at many different stages of growth. One thing we’ve learned is that every franchise brand follows its own timeline. Some founders are ready to begin franchise sales soon after completing their FDD, while others choose to strengthen their franchise development process before bringing additional franchise owners into the franchise system.
How can Franchise FastLane help after my FDD is complete?
Franchise FastLane supports franchisors with active FDDs through franchise development expertise, franchise sales support, coaching, and strategic recommendations. Depending on your goals, that may include CarPool for in-house franchise development or FastLane for outsourced franchise sales. If you’re still preparing to franchise, Franchise Creator can help you understand the steps that come before franchise development.