Tom Spadea was recently interviewed by Rob Bennett, a co-founder of the franchise consultancy firm FranFinders. Watch the full interview below to hear how Tom thinks franchising will be changing in the coming years. Plus, hear his best advice for those considering investing in a franchise.
Tom started as a franchise consultant and then moved on to selling franchises before becoming a franchise lawyer. It gives him a unique perspective because he understands the business side of franchising and the importance of relationships within franchise systems.
Changes to Franchising
When asked about changes that might be happening in the franchising world in the next 3-5 years, Tom says that from a legal standpoint, regulations may start creeping up. For example, a lot of states are making changes to the FDD in terms of earnings claims and what you can and can’t say in the Item 19. The states have been taking a more active role, so franchisors need to be careful about understanding regulations in the states they are registering in.
Best Advice for Investors
Tom also talks about his best advice for people who are considering investing in a franchise. That advice? Take the time to talk to franchisees who are in the system before you make a final decision. You’ll learn what’s beyond the contract.