Explanation

This risk was not identified in the FDD package. A new or unproven system can present higher risks due to a lack of established brand recognition, untested operational procedures, and inexperienced management. While TGG has a limited history, it is part of the large, long-standing United Franchise Group, which mitigates some of the risks typically associated with a new system.

Potential Mitigations

• A thorough review of the management team's experience in both franchising and the restaurant industry should be conducted with your business advisor.
• Speaking with the earliest franchisees in the system can provide valuable insight into the franchisor's evolution and support capabilities.
• Your accountant should assess the franchisor's financials for evidence of stability and long-term viability.

Explanation

This risk was not identified in the FDD package. A fad business is tied to a fleeting trend, lacking long-term consumer demand. The Greek and Mediterranean food concept is a well-established segment of the restaurant industry with a long history, not a new or novel trend. Therefore, the risk of the business model being a short-lived fad appears to be low.

Potential Mitigations

• Independent market research, with the help of a business advisor, can help confirm the long-term consumer demand for this type of cuisine in your specific area.
• Evaluating the franchisor's plans for menu innovation and adaptation can provide insight into their long-term vision.
• An accountant can help you model the financial resilience of the business under various economic conditions.

Explanation

While TGG itself has limited history (since 2017), its management team as disclosed in Item 2 consists of individuals with extensive experience across numerous franchise brands under the United Franchise Group (UFG) umbrella. This suggests access to significant franchising expertise. However, you may find that management's attention could be divided among the many UFG brands, potentially affecting the level of dedicated support for this specific concept.

Potential Mitigations

• Inquiring with current franchisees about the responsiveness and expertise of the brand-specific support team is advisable.
• Your business advisor can help you analyze the backgrounds of the key personnel listed in Item 2 to assess their direct experience in the food service sector.
• Clarifying who your primary, day-to-day support contacts will be and their specific roles can provide a clearer picture of the support structure.

Explanation

This risk was not identified in the FDD package. The franchisor, Great Greek Franchising, LLC, is disclosed in Item 1 as being part of the United Franchise Group (UFG) tradename, which is a collection of affiliated brands owned by its members. It does not appear to be owned by a traditional private equity firm focused on short-term investment cycles. However, the business model involves a large, multi-brand franchisor conglomerate.

Potential Mitigations

• Understanding the ownership structure and its potential impact on long-term strategy should be a point of discussion with your franchise attorney.
• Asking current franchisees about any significant changes in fees, support, or system direction can provide insight into the ownership's philosophy.
• A business advisor can help you research the track record of United Franchise Group and its other affiliated brands.

Explanation

This risk was not identified in the FDD package. The franchisor discloses its parent companies in Item 1, UFG Holdings Group, LLC and TGG Partners, LLC. Because TGG's own financial statements are provided and audited, and there is no indication that a parent company guarantees performance, the financials of the parent are not required or provided. There is no evidence of failure to disclose a required parent entity.

Potential Mitigations

• Your attorney can confirm if the disclosure of parent and affiliate companies complies with franchise regulations.
• If a parent company were to provide a guarantee, an accountant should review their financials for stability.
• A business advisor can help you understand the relationships between the franchisor and its various affiliates within the United Franchise Group.

Explanation

This risk was not identified in the FDD package. Item 1 states that the franchisor has no predecessors. The business was formed in 2017 and began franchising in 2018. Therefore, there is no risk of undisclosed or negative history from a predecessor entity.

Potential Mitigations

• Your attorney should always verify the accuracy of the statements made in Item 1 regarding predecessors.
• For franchises that do have predecessors, a business advisor can help research the predecessor's history and reputation.
• In cases with predecessors, speaking with long-term franchisees who operated under the previous ownership is a key due diligence step.