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  • Writer's pictureCrystal Lizama, CFE

What do people mean when they say 'a proven franchise system'?


Proven franchise systems are franchise opportunities that have a track record of success and are considered to be a low-risk investment for potential franchisees. Proven franchise systems typically have a strong and established brand, a proven business model, and a high level of support and resources provided to franchisees.


Proven franchise systems offer a number of advantages for potential franchisees. By investing in a proven franchise system, potential franchisees can leverage the success and expertise of the franchisor, as well as the established brand and customer base, to quickly and successfully launch and grow their own business. Proven franchise systems also typically provide a higher level of support and resources to franchisees, helping them to overcome common challenges and obstacles in the early stages of their business.


Typically in a proven franchise system, a franchisor typically needs to have a strong and established brand, a proven business model, and a track record of success.


Important: There is no actual method or standard in place to 'qualify' as a proven system. Franchisors can actually just throw out this term on their website, even if the system is not 'proven'.


Franchisors using this term, usually provide detailed financial information (found in Item 19 in the franchise disclosure document) and other data to potential franchisees, in order to demonstrate the viability and profitability of the franchise opportunity. You can also reach out to franchisees currently in the system to make your own evaluation of the offering as well. That information can also be found in the FDD.


Overall, proven franchise systems offer a valuable opportunity for potential franchisees, providing a low-risk way to launch and grow their own business, leveraging the success and expertise of the franchisor. By carefully evaluating and selecting a proven franchise system, potential franchisees can set themselves up for success and achieve their entrepreneurial dreams.


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