The Era of Data-Driven Franchising Has Arrived

”In God we trust. All others must bring data.” W. Edwards Deming

Wefranch had launched DataLab to serve prospective franchisees during their research process by providing clean data.

The Federal Trade Commission (FTC) mandates that franchisors disclose essential facts through the Franchise Disclosure Document (FDD). As a result, there is a vast pool of information about franchise concepts. The problem is this data is largely unstructured and hard to find. Until now, there were three ways to research a franchise concept.

1. Pay for access via franchise portals: Platforms charge a fee for each FDD.
2. Jump through hoops on franchisor websites: Prospects often need to provide personal information, such as net worth and assets, fill out detailed forms, and endure multiple calls before receiving an FDD.
3. Rely on franchise brokers: Commission-driven brokers may provide limited and biased advice, leaving prospects without the full picture.

“Men lie, Women lie, Numbers don’t lie” ~Jay Z from “Reminder“

DataLab tackles this problem by collecting, and parsing tens of thousands of FDDs. It provides both structured data and raw documents—completely free.

Here is how DataLab supports franchisees’ research:

1. Discover non-traditional operating models:
Some franchise myths claim that huge amounts of capital are required to launch a franchise. DataLab highlights numerous non-traditional opeating models, such as mobile trucks or area development deals. Information about these options— unavailable elsewhere on the Internet- is now at any franchisee’s fingertips.

Area Development and Kiosk Operating Models on Wefranch

2. Analyze financials for dozens of concepts:
Item 19 in the FDD is a cornerstone of franchise due diligence, detailing the financial performance of corporate and franchise units. DataLab provides access to this information with one click.

3. Access anonymized and verified franchisee reviews:
Getting feedback from current franchisees is critical for understanding a franchise brand’s performance. Yet tracking down these busy business owners can be a daunting task. DataLab solves this by collecting verified reviews from thousands of franchisees.

Browse Verified Franchisee Reviews on Wefranch

4. Find prime territories
Even the best franchise is only as good as its availability in the desired location. Instead of endless back-and-forth emails with franchisors, DataLab maps out existing territories.

And yes, DataLab is free. Wefranch does not collect any commissions on franchise sales either. Wefranch generates revenue from software tools for franchisors.

Just as investors in publicly traded markets use advanced tools to analyze companies, franchisees can now rely on DataLab for accessible data to build understanding and make confident decisions.

Try it now.

“If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” ~Jim Barksdale, former CEO of Netscape