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customer experience

I have visited a B. Good restaurant in Beverly, Ma a few times. My first time it was very new, good but a little on the expensive side. 6 months later I was 1 of 3 people in the place at 3pm and 2 people were students looking at their laptops. There had to be no fewer than 4-5 workers there yet it still took 15 minutes for my food and it was not that good. I'm a franchisee and if I had customer service and wait times like that I'd be out of business, which seems to be where this on is headed.

Really not that hard to obtain information...

Really, Don? The 2016 FDD (available from Indiana or FRANdata) has Item 19 representations, and it took me approximately 7 minutes to get a copy.

My suggestion for franchise investors looking for decent advice and reading Don's post -- move on. Life is short and more competent consultants are plentiful.

Don Sniegowski's picture

Note for franchise buyers on B.Good: insufficient info to invest

Here's a quick look at B. Good, a chain of burger stores that runs from Virginia up to Maine. I try to make it a point to look at online franchise disclosure documents about companies that I report on, even if it is a report on another matter, such as succession planning. FDDs can give me an idea on the health of the franchisor.

Information about this company for franchise buyers is not easily forthcoming. Be cautious. This journal has not been able to find current disclosed franchise-level profits or even average gross sales for its franchises online. Such unit-level financial information is basic to investing. If an investor in a new unit does not know what an average franchise makes, how can he or she determine what a reasonable return on investment will likely be? It should be pointed out that the chain sells franchises up and down the eastern seaboard and none of those states provide online franchise disclosure documents. In fairness an investor should be able to obtain a disclosure document if they tell the company they are interested in buying one of their franchises. But the difficulty of finding such information makes this reporter wary. To its credit, B.Good disclosed "annualized sales" in its 2012 FDD that can be seen online in its Minnesota filing. But then it stopped registration in Minnesota and California. It was also a long time ago.

Another word of caution: B. Good is also a small and still early developing concept that is riskier for franchise investors than those of large established chains. It is managing to grow the number of its branded outlets, albeit I cannot easily find what its mix of company-owned to franchised units is. B. Good had 9 company-owned outlets as of 2012, its last year of filing a disclosure document in California. In 2013, franchise researcher states that B. Good had its first two franchises, bringing its total outlets to 11.

This reporter quickly found that besides no longer providing franchise disclosures in California, B. Good's registration to sell franchises has lapsed in Minnesota. That means B. Good cannot offer franchises in those states. Yet its website markets franchise outlets and asks potential franchise buyers to fill out their information, no matter where their territorial focus is. 

Researcher adds on its website that B. Good has not bothered to fully complete its franchising information profile with them directly or from states that they research -- both online and off. In its latest press release, B. Good says that as of June 2018, it has almost 70 outlets.

So what does all of this mean from a quick initial glance of the brand? There are other restaurant chains where one can find such information easily, almost immediately online. There are just so many other companies with readily available information to pursue. My suggestion for franchise investors -- move on. Life is short and restaurant opportunities are plentiful. 

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