Grasons Logo

Grasons

B & P Burke, LLC
https://www.grasons.com
1-714-846-3800
8100 E. Indian School Road, Suite 201, Scottsdale, Arizona 85251

Initial Investment Range

$71,550 to $118,800

Franchise Fee

$57,400

We offer franchises for businesses that specialize in estates sale and business liquidation services under the tradename Grasons.

Enjoy our complimentary free risk analysis below

Unlock the full risk analysis to access 9 more categories covering 100+ risks.

Grasons April 29, 2025 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.

1

Franchisor Stability Risks

Start Here
Total: 10
3
3
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor's parent, EHC Holding Company, LLC, which guarantees performance, has reported significant and recurring net losses for the past three fiscal years: ($6.7M) in 2024, ($7.7M) in 2023, and ($5.0M) in 2022. The FDD's 'Special Risks' section also explicitly highlights the franchisor's financial condition as a risk. Such persistent losses, funded by capital infusions, may question the company's long-term ability to support franchisees without continued external funding.

Potential Mitigations

  • A franchise accountant must conduct a thorough review of the parent company's audited financial statements, including all footnotes and cash flow statements, to assess its viability.
  • Discuss the franchisor’s strategy for achieving profitability and its financial capacity to provide ongoing support with your business advisor.
  • Your attorney should review the parent's performance guaranty to understand its scope and limitations.
Citations: Item 4, FDD page 4, Exhibit E

High Franchisee Turnover

High Risk

Explanation

Item 20 data for 2024 shows 3 terminations and system growth of 37%, which can strain support systems. More significantly, the FDD discloses that some former franchisees have signed confidentiality agreements restricting their ability to speak with you. This practice can obscure the true reasons for franchisee departures and may prevent you from gathering a complete picture of system health and franchisee satisfaction, potentially hiding a higher effective turnover rate.

Potential Mitigations

  • It is critical to contact a wide range of current and former franchisees from the lists in Exhibit G to discuss their experiences, as advised by your attorney.
  • Ask the franchisor direct questions about the circumstances surrounding the terminations and the use of confidentiality agreements.
  • Your accountant should analyze the turnover and growth rates together to assess the stability of the system.
Citations: Item 20, FDD page 40

Rapid System Growth

Medium Risk

Explanation

The system has more than doubled in size in the last two years, growing from 28 to 61 franchised outlets. While growth can be positive, such a rapid expansion rate, particularly when combined with the parent company's significant financial losses, presents a risk. The franchisor's support infrastructure, including training and field support staff, may not be able to keep pace with the needs of a rapidly expanding franchisee base.

Potential Mitigations

  • In discussions with current franchisees, specifically ask about the quality and responsiveness of franchisor support as the system has grown.
  • A business advisor can help you question the franchisor about their specific plans and resource allocation for scaling support systems to match unit growth.
  • Your accountant should review the financials to see if investment in support infrastructure corresponds with the rate of expansion.
Citations: Item 20

New/Unproven Franchise System

Medium Risk

Explanation

The franchisor, B & P Burke, LLC, has been franchising since 2014, so it is not a new system. However, it was acquired by a private equity firm in November 2021, and much of the current executive team joined after the acquisition. The FDD also discloses that the franchisor itself has never directly owned and operated a GRASONS business. This may suggest a lack of direct, hands-on operational experience at the corporate level.

Potential Mitigations

  • A business advisor can help you investigate the track record of the parent private equity firm, Evive Brands, with its other franchise systems.
  • It is important to ask current franchisees about the quality of operational guidance and support they receive from the current management team.
  • Your attorney should help you ask direct questions about the franchisor management's specific experience operating this type of business.
Citations: Item 1, Item 2

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD Package. The business of estate sales and business liquidations is a well-established service industry. However, you should still consider how local market trends, online auction platforms, and economic shifts might affect long-term consumer demand for these specific services. A business model's long-term viability is a crucial factor for a 10-year franchise commitment.

Potential Mitigations

  • Engage a business advisor to research the long-term market trends for estate liquidation services in your specific area.
  • Discuss the franchisor's strategies for innovation and adaptation to changing market conditions and new technologies with your business advisor.
  • When speaking with current franchisees, ask about the sustainability of demand and how they adapt to local market changes.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

Much of the current executive leadership team, including the CEO, President, and CFO, assumed their roles with the franchisor in 2021, 2022, or 2023, coinciding with the private equity acquisition. While they may have experience with affiliate brands or other companies, this indicates a relatively new management team for the Grasons brand specifically. This newness could impact strategic direction and the consistency of support as they integrate the brand into their larger portfolio.

Potential Mitigations

  • A business advisor can help you thoroughly research the backgrounds of the key executives and their specific experience in this industry and in franchising.
  • It is advisable to ask current franchisees about their perceptions of the management team's competence and the quality of support since the acquisition.
  • During your discussions with the franchisor, inquire about the management team's long-term vision and commitment to the Grasons brand.
Citations: Item 2

Private Equity Ownership

High Risk

Explanation

The franchisor is indirectly owned by The Riverside Company, a private equity firm, through parent companies Evive Brands and EHC Holding Company. This ownership structure may create a focus on maximizing short-term returns for investors, which could potentially conflict with the long-term health of franchisees. The Franchise Agreement also permits the franchisor to sell or assign the system without your consent, a common strategy for PE firms.

Potential Mitigations

  • You should research the private equity firm's reputation and its history with other franchise brands it has owned with the help of a business advisor.
  • When speaking with franchisees, ask about any changes in fees, support, or strategic direction since the PE acquisition in late 2021.
  • Your attorney can explain the implications of the assignment clause, which gives the franchisor the right to sell the brand.
Citations: Item 1, Item 12, Item 17

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. The franchisor properly discloses its direct and indirect parent companies in Item 1. Furthermore, it provides audited consolidated financial statements for the ultimate parent, EHC Holding Company, LLC, and includes a performance guaranty from that parent. This level of disclosure appears to meet regulatory requirements and provides transparency into the financial backing of the system.

Potential Mitigations

  • Have your accountant review the provided parent company financials and the performance guaranty to understand the level of financial backing and its legal enforceability.
  • Your attorney can confirm that the relationships between the franchisor and its parent entities are clearly disclosed and structured.
  • It is wise to ask your attorney to verify if the parent company has fulfilled similar guarantees for other brands in its portfolio.
Citations: Item 1, Item 21, Exhibit E-1

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. The franchisor states in Item 1 that it does not have any predecessors. The business was started and franchised under the same corporate family, although ownership has since transferred to a private equity firm. Therefore, risks associated with an undisclosed or problematic predecessor history do not appear to be present.

Potential Mitigations

  • Your attorney should confirm the corporate history as disclosed in Item 1.
  • Independent online searches for the brand name and original founders can sometimes reveal history not captured in the FDD; a business advisor can assist.
  • When speaking with long-term franchisees, you can ask about the brand's history to verify the non-existence of a predecessor.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk appears to be low. Item 3 discloses a single regulatory settlement order from 2016 involving an affiliate, Brothers Parsons Franchising LLC, for an unregistered franchise sale in Virginia. While this involves a related party, it is an isolated incident from several years ago and does not involve the Grasons brand directly. The FDD states no other litigation is required to be disclosed, suggesting there is no pattern of franchisee-initiated lawsuits alleging fraud or misrepresentation against Grasons.

Potential Mitigations

  • Your attorney should review the details of the disclosed affiliate litigation and confirm its relevance to your investment is minimal.
  • Conducting independent online searches for litigation involving 'Grasons' or 'B & P Burke, LLC' may provide additional peace of mind.
  • You can ask the franchisor if they have had any informal disputes with franchisees that did not escalate to litigation.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
4
0
11

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.

3

Financial & Fee Risks

Total: 10
3
4
3

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.

4

Legal & Contract Risks

Total: 16
6
6
4

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.

5

Territory & Competition Risks

Total: 5
4
1
0

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.

6

Regulatory & Compliance Risks

Total: 10
6
2
2

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.

7

Franchisor Support Risks

Total: 4
2
2
0

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.

8

Operational Control Risks

Total: 12
2
7
3

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.

9

Term & Exit Risks

Total: 18
11
4
3

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.

10

Miscellaneous Risks

Total: 2
1
1
0

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.