Not sure if Corporate Connections is right for you?
Take our 1-minute franchise matching quiz to get in touch with a Franchise Advisor that can match you with your perfect franchise based on your goals, experience, and investment range.
Take the Quiz & Get Matched
CorporateConnections
How much does CorporateConnections cost?
Initial Investment Range
$4,600,592 to $4,840,592
Franchise Fee
$4,512,500 to $4,635,000
You will open and operate a CorporateConnections® master franchised business, which will recruit, offer, sell and provide ongoing support and assistance to CorporateConnections businesses located inside a designated territory.
Enjoy our partial free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
CorporateConnections July 23, 2024 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The 2023 audited financials for Corporate Connections Franchising, LLC (CCF) show a member's deficit of over $167,000 and minimal operating revenue, indicating it is not self-sufficient. It has a significant payable to related parties and its assets are pledged as collateral for an affiliate's debt. This financial weakness and dependence on affiliates may affect CCF's ability to support you and grow the brand, posing a substantial risk to your large investment.
Potential Mitigations
- A qualified franchise accountant must thoroughly analyze the franchisor's financial statements, including all footnotes and the large related-party payables.
- Your attorney should investigate the implications of CCF's assets being used as collateral for an affiliate's debt.
- Discuss the franchisor's capitalization and financial stability with your financial advisor to assess its long-term viability.
High Franchisee Turnover
Low Risk
Explanation
This specific risk is not present, as the tables in Item 20 show that CCF has had no active franchised or company-owned outlets in the United States over the last three years. While this means there is no history of high turnover, the complete lack of operational units points to a different, significant risk related to the system being new and unproven.
Potential Mitigations
- Engaging a business advisor to research industry-average turnover rates can provide a benchmark for future evaluation.
- Your attorney can help you formulate questions for the franchisor regarding their strategies to ensure franchisee success and avoid future turnover.
- An accountant should model different scenarios for profitability to understand the conditions under which a franchisee might struggle.
Shrinking or Stagnant Franchise System
Low Risk
Explanation
This risk was not identified in the FDD package. Generally, a franchise system that is shrinking or stagnant, as might be indicated by data in Item 20, can be a red flag. Such a trend could signal declining consumer demand, franchisee dissatisfaction, or a business model that is no longer competitive, affecting brand value and your potential for growth.
Potential Mitigations
- In any franchise review, it's wise to have an accountant analyze the multi-year outlet data in Item 20 to identify growth, stagnation, or decline.
- A business advisor can help compare the system's growth trajectory against that of its direct competitors and the broader industry.
- Consulting with your attorney about the potential impacts of a shrinking system on your contractual obligations is a prudent step.
New/Unproven Franchise System
High Risk
Explanation
The FDD indicates this is a new master franchise opportunity that began in June 2024, and Item 20 confirms there are no operating U.S. franchises. You are investing a very significant amount, over $4.5 million, into a concept that is unproven in the U.S. market. This presents a substantial risk regarding the viability of the business model, the adequacy of the franchisor's support systems, and the brand's ability to gain recognition.
Potential Mitigations
- Given the lack of a U.S. track record, conducting extensive due diligence on the concept's performance in other countries is critical with your business advisor.
- Your accountant must help you develop financial projections with very conservative assumptions due to the unproven nature of the system.
- An experienced franchise attorney should be engaged to negotiate more favorable terms to compensate for the higher risk you are assuming.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. A potential risk in franchising is investing in a concept that relies on a short-lived trend or fad. Such businesses can experience rapid growth followed by a sharp decline in consumer interest. This could leave you with long-term contractual and lease obligations for a business with a collapsed market, jeopardizing your entire investment.
Potential Mitigations
- Engage a business advisor to conduct independent market research on the long-term viability and consumer demand for the products or services offered.
- Question the franchisor about their long-term strategy, research, and development plans to adapt to changing market trends.
- Your financial advisor can help assess the business model's resilience to economic shifts and its sustainability beyond the current hype.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the provided FDD. The individuals managing the franchise system have prior experience in franchising and related industries. However, it is always important to assess if the management team's specific experience aligns with the challenges of a new master franchise system. A lack of relevant experience could impact the quality of training, support, and strategic guidance.
Potential Mitigations
- A business advisor can assist you in researching the professional backgrounds and track records of the key executives listed in Item 2.
- Posing questions to the franchisor about how their team's past experiences specifically prepare them to support a master franchisee is a worthwhile exercise.
- Your attorney can help you understand what contractual commitments the franchisor has made regarding the provision of support.
Private Equity Ownership
Medium Risk
Explanation
The franchisor's ultimate parent is Prosperity Brands, LLC, and its directors have ties to Pamlico Capital, a private equity firm. Private equity ownership can introduce a focus on short-term returns, which might lead to decisions like increasing fees or cutting franchisee support to maximize profits for a future sale of the system. This could potentially conflict with the long-term health and profitability of your master franchise.
Potential Mitigations
- It is beneficial to have a business advisor help you research the private equity firm's history with other franchise brands they have owned.
- Your attorney should review the assignment clauses in the Franchise Agreement to understand your rights if the system is sold.
- Question the franchisor about the long-term vision for the brand under its current ownership structure.
Non-Disclosure of Parent Company Financials
Medium Risk
Explanation
The franchisor, CCF, is a wholly owned subsidiary of Corporate Connections Global, LLC, which is part of a complex structure of parent companies and affiliates. CCF's own financial statements show it is not self-sufficient and is dependent on these affiliates. The FDD provides financial statements for CCF, but not for the ultimate parent, Prosperity Brands, LLC, which could obscure a complete picture of the overall financial health and backing of the system.
Potential Mitigations
- Your accountant should carefully review the disclosed financials and the web of affiliate relationships described in Item 1.
- It is important to ask your attorney to clarify which entity, if any, guarantees the franchisor's performance obligations to you.
- Inquire with the franchisor about the financial health of the parent company and its commitment to supporting the CCF brand.
Predecessor History Issues
Low Risk
Explanation
This risk concerning predecessor history was not identified in the FDD package. Item 1 indicates CCF has had no predecessors. In cases where a franchisor acquires a business from a predecessor, it's crucial to examine the predecessor's history for issues like litigation, bankruptcy, or high franchisee turnover. A failure to disclose or downplay such a history could hide systemic problems that you might inherit.
Potential Mitigations
- When a predecessor is disclosed, your attorney should carefully scrutinize Items 1, 3, 4, and 20 for any red flags from that history.
- A business advisor can assist in researching the predecessor's public reputation and track record.
- Asking long-tenured franchisees about their experience under a previous owner can provide valuable, unvarnished insights.
Pattern of Litigation
High Risk
Explanation
Item 3 discloses past litigation involving CCF's affiliate, BNI, and CCF's Chairman at a previous company. The BNI cases involved contentious non-renewals of master franchise agreements, with one resulting in a $3.8 million payout by BNI. The other case involved franchisee claims of fraud. This pattern of disputes concerning master franchises and misrepresentation is a significant warning sign for you as a prospective master franchisee investing a substantial sum.
Potential Mitigations
- Your franchise attorney must conduct a detailed analysis of the litigation disclosed in Item 3 to understand the nature and resolution of the claims.
- These disclosures should prompt a more intensive due diligence process, including pointed questions to the franchisor about these past events.
- A business advisor should help you assess whether this history indicates a potential pattern of conduct that could affect your own relationship.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Related Business Services Franchises
Breakaway BA
$10,500 to $34,500
Doxa Talent Franchising
$80,274 to $115,875
Focus CFO
$36,000 to $64,000
Goodcents
$100,000 to $500,000
Intelligent Office
$228,000 to $1,560,498
Ledgers
$155,250 to $314,000
Murphy Business & Financial Corporation
$65,840 to $88,050
Network In Action
$37,710 to $42,700
Success Franchising
$114,500 to $169,700
Sunbelt Business Brokers
$57,950 to $118,500
TAB Boards International
$77,130 to $95,405
The Growth Coach
$54,000 to $75,900