Once the franchisee opens, you should go back through the entire file and ensure that everything is in order. Make sure:
- The franchise agreements are in order
- All the names are matching
- Addresses are correct
- Lease is correct
- Entity information is correct
- Everything is properly signed
- FDD receipt page for each principal is included
- Franchisee training is scheduled/complete
Once the franchisee opens, you’re essentially taking that entire file, putting it in a box, and burying it. The next person that’s going to dig it up will be the private equity treasure hunter. And what they find in that box is going to be exactly what that box probably looked like the day your franchisee had a grand opening. Now you might have transfers and renewals and things that will affect the box, but for the majority of franchisees, you’re never looking at those franchise agreements again.
If you have a deficiency in your franchisee’s file, it’s much easier to solve at this point when the franchisee is new and happy, rather than down the line.