New York, NY December 10, 2024:- After 9 months of intense work collecting data from Franchisors FDD’s, WeFranch has officially launched DataLab, a groundbreaking platform designed to empower prospective franchisees by offering clean, accessible data for informed decision-making during their research journey.
The Federal Trade Commission (FTC) requires franchisors to disclose critical information through the Franchise Disclosure Document (FDD) to ensure transparency and protect prospective franchisees. This document contains 23 essential items, ranging from the franchisor’s history and litigation record to financial performance data and franchisee obligations. It’s designed to help potential investors evaluate franchise opportunities comprehensively before committing. However, despite the wealth of information available in FDDs, the data is often unstructured and scattered across various sources, making it difficult for franchisees to efficiently access and analyze.
Until now, prospective franchisees faced three primary methods for researching franchise concepts, each with notable drawbacks:
- Pay for FDD access: Franchise portals often charge fees for each document, making the process costly.
- Navigate franchisor hurdles: Obtaining an FDD from franchisors often involves sharing sensitive personal details, completing lengthy forms, and enduring repeated sales calls.
- Consult franchise brokers: While brokers offer guidance, their commission-based advice may be biased and incomplete.
As Jay-Z aptly said in Reminder: “Men lie, Women lie, Numbers don’t lie.”
DataLab solves these challenges by processing and structuring tens of thousands of FDDs. The platform offers both comprehensive data insights and raw documents—completely free of charge.
How DataLab Empowers Franchise Research
- 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 operating 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.
- 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.
- 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.
- 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.
A Free, Transparent Solution
Remarkably, DataLab is free to use. WeFranch does not take commissions on franchise sales. Instead, the company generates revenue by providing software tools for franchisors.
Gregory Ugwi, Co-Founder of WeFranch, emphasizes the platform’s mission: “Franchising is an excellent tool for building generational wealth. With the right data, we aim to unlock this pathway for large groups of people. We’ve been working on collecting and structuring clean data for the past nine months. This tool is now available for free to all prospective franchisees.”
Much like investors in public markets use sophisticated tools to evaluate companies, franchisees now have access to DataLab—a resource that simplifies complex decisions and provides clarity.
As former Netscape CEO Jim Barksdale said: “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.”
Start your journey with DataLab today.
