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Contents of a Franchise Prospectus

The franchisee prospectus varies from one business to another and from one industry to another. The more established and older franchisor organizations generally have some of the more elaborate franchisor prospectuses.

One of the best illustrations of a franchise prospectus is from Hampton Inn, a division of Promus Companies. The Hampton Inn prospectus includes the following:

    history

    guest satisfaction

    occupancy

    100 percent satisfaction guaranteed

    incremental revenue

    new developments

    standard hotel prototype

    modified hotel prototype

    hotel conversions

    support from franchisor

    construction of finance

    markets/site screening

    appraisal and feasibility study

    design/construction review and consultation

    financing support

    reservation system explanation 

    marketing support from franchisor

    training from franchisor

    performance support

    operations and management support

    national and hotel marketing

    build to last

In addition to the basic brochure, Hampton Inn will also include:

    Uniform Franchise Offering Circular (UFO)

    franchise agreement

    construction costs

    site plans

In addition, more system support is also provided through an explanation of a greater in-depth:

   history

   system magazine

   system directories

Another typical franchisee prospectus is offered by Thrifty Car Rental. This is an excellent prospectus and includes the following outlined in its table of contents:

   the entrepreneurial spirit

   Thrifty philosophy

   how Thrifty supports its licensees

   worldwide reservation system

   vehicle supply

   insurance

   counter automation

   training

   licensee operations

   quality and standards

   systems supply

   marketing

   advertising

   sales

   airline and hotel programs

   consumer services

   legal support

   international support

   questions and answers

   system growth

  what to do next

An area often covered in a franchisee prospectus includes a question and answer section which primarily deals with territory, fees, costs, and possible return on investment.

Thrifty also explains the different steps which you need to follow to become a Thrifty franchisee. This allows you as an individual to know the particular steps which you must follow to become a successful franchisee. In addition to the beautifully illustrated brochure which Thrifty offers, they also include their Uniform Franchise Offering Circular as well as their attached franchise agreement. This provides you a fairly complete rundown of the Thrifty system and allows you to compare it against other systems that you might be interested in.