Assignment:
Franchise Disclosure Document (FDD) or Uniform Franchise Offering Circular (UFOC)
Use the FDD for Houlihan's Restaurants, Hard Rock Hotels and Five Guys Burgers and Fries to answer the following questions.
I have also provided the company website for each for further information. However, use only the FDD to address the questions. The websites are only for use in familiarizing yourself with the companies.
Houlihan's Restaurant
Hard Rock Hotel
Five Guys Burgers and Fries
1. Each FDD is required by the Federal Trade Commission (FTC) to contain specific categories of information. List those specific categories in order. Do the three companies in question have complete FDD's? If not, what sections are missing and why?
2. How much would it cost you to acquire the franchise rights for each of the companies? Is the franchise cost information from each company's FDD different from figures listed on the company website? If so in what way?
Houlihan's Restaurant
Hard Rock Hotel (per room figure)
Five Guys Burgers and Fries
3. The function of the FDD is to provide information and full disclosure about the company.
Full disclosure is provided in the earliest sections of the FDD (Business experience of the franchisor, Litigation experience of the franchisor and Bankruptcy of the franchisor) so that a person reviewing a company will be aware of any problems. What disclosures (if any) revealed in the three FDD's in questions would give you concerns?
Houlihan's Restaurants
Hard Rock Hotels
Five Guys Burgers and Fries
4. The rights to use intellectual property owned by the franchisor is listed in the FDD. What types of intellectual property rights are extended to the franchisee for each company (be specific)?
Houlihan's Restaurants
Hard Rock Hotels
Five Guys Burgers and Fries
5. What is the total number of franchisees for each company according to the most recent figures listed in each company's FDD? Are there more recent figures listed on the company's website? If so how many franchisees does the company have now?
Houlihan's Restaurants
Hard Rock Hotels
Five Guys Burgers and Fries
6. What types training and support is available according to each company's FDD?
Houlihan's Restaurants
Hard Rock Hotels
Five Guys Burgers and Fries
7. Given what you can determine from the FDD and the company's website, provide an opinion on each company regarding their desirability and potential as a successful franchise. If you had the required financial capability would you invest in any of the franchises?
Houlihan's Restaurants
Hard Rock Hotels
Five Guys Burgers and Fries