Franchise Information Packet (F.I.P.) – Typically between 12 and 18 pages, the Franchise Information Packet or Package, also known as the FIP, is a marketing piece developed by a franchise for people potentially interested in buying into their franchise opportunity. It covers all the key aspects of the franchise, industry data, potential earnings, and how to get started.
What’s Included
A typical FIP will have some or all of the following components.
Mission Statement
Often a franchise information packet starts out with a mission statement, outlining what the franchise is all about and what its goals are in the short-term and long-term.
Back Story
Many franchises include a brief history of the company and how it got started. For newer franchises, it may be a story about how the franchise was formed, or how the founders we’re inspired to start the franchise.
Costs
Included in the FIP are the costs involved in buying into the franchise opportunity. This includes the initial startup costs, as well as ongoing costs. For many franchises, this section will also include an amount of additional working capital for the initial opening phases of the business. This will sometimes be recommended, and not mandatory.
Also, included in the cost section is typically a breakdown of what is included for the fees.Things like equipment will be included in this section if it is included with the franchise fee.
Potential
Usually there’s a section that covers industry data, and potential in the overall market, as well as potential earnings for the franchisee.
Royalties
There will most likely be a section that explains royalties – the fee that the franchise takes in exchange for using the franchise model and trademarks. Royalty structures typically vary from franchise to franchise.
Training
It’s also very common to find a section in the FIP that covers training. One of the most important components of a franchise offering is the training, and shouldn’t be overlooked. Franchises with great systems and training typically have successful franchisees.
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