The Franchise Disclosure Document given to prospective franchisees shall include national and local market statements.
These “statements” shall present the goods/services market related to the franchise’s activity.
These are not “studies“: it’s up to the prospective franchisee to carry out his own market study.
The national market statements include a nationwide presentation of the relevant market, the target clientele, the population, the various actors and competitors.
They shall also include a section analyzing the market’s “development perspectives”.
The local market statements are carried out in the geographic area where the candidate wishes to operate its business: city/neighborhood.
They include a list of competitors, the population and traffic flows in the area.
To provide these statements, the franchisor may:
– use existing market data (e.g. XERFI studies) and summarize them, citing and retaining the sources used ; or
– use the services of a specialist firm.
