Schedule Your Strategy Session
Let's Prepare for 2023! As we enter Q4 our team already started planning your 2023 FDD, registrations, and renewal strategy and would like to schedule a planning session with your team.
Our team is preparing for 2023 by implementing best practice driven FDD updates and enhancements. We have also started the planning process for improving Item 19's, planning registration and renewal strategies, and implementing the necessary processes to evaluate balance sheets and prepare for potential state specific financial assurance requirements.
2023 FDD Goals include:
- Setting strategy sessions and meetings (now) with our clients to prepare for 2023
- Completing our 2023 FDD updates by December 31, 2022 so that the FDD is ready top deploy in January 2023
- Upgrading and enhancing Item 19's to enhance competitive advantages
- Avoid registration and renewal delays
- Plan ahead and anticipate potential state specific financial assurance requirements.
If you already scheduled your strategy call, check out our resources below.
One of the most important factors in ensuring and proactively receiving registration and renewals is getting your audit as soon as possible. We recommend the following actions to help improve the processing of your FDD:
- Let's schedule a call with your accountant
We'd be glad to participate to discuss the need for an early audit. Let's see how we can assist in getting early information. To avoid registration delays, our goal date to receive your audit is February 15, 2023.
- Have your accountants conduct a Q4 Review of your Balance Sheet
The impact of accounting standard ASC 606 - requiring deferral of initial franchise fee recognition - continues to impact balance sheets and franchisor equity. In turn, reduced shareholder equity can can trigger the imposition of state specific financial assurance requirements. Before Q4 ends, its important to assess and review your shareholder and member equity and whether or not financial assurance requirements may be imposed and, if so steps that we should start taking now.
- Financial assurance requirements
Here is a link to our guide on financial assurance requirements.
Item 19 Financial Performance Representations
One of the most important aspects of your FDD is your competitive Item 19 Financial Performance Representations. Let's start updating and upgrading your Item 19 for 2023 and complete our planning guide.
FDD Updates and Upgrades
It's required to disclose whether there have been any material changes to your FDD. Please let us know if there are changes, specifically, to these items:
- Management Team
- Brand Development Fund
- Outlets Opened/Closed