SYS-CON Brasil:

How much money can I earn?” is one of the top questions that entrepreneurs and potential franchisees typically ask before they invest in a business, but more than 70 percent don’t receive an answer until after they sign on the dotted line. Interstate Batteries Franchise and Development, the franchisor of Interstate All Battery Center (IABC), says its full disclosure policy sets them apart from the majority of franchised concepts.

According to the FTC’s Franchise Rule, Item 19 in any franchise disclosure document (FDD) permits a franchisor to provide information about the actual or potential financial performance of its franchised-owned outlets. However, statistics from FRANdata’s franchise industry analysis indicate less than one third of all today’s franchisors offer earnings claims.

“Financial expectations are the top question we hear from interested franchisee candidates,” said Eric Stites, Founder and President of Franchise Business Review, an independent market research company that specializes in franchisee satisfaction. “It boggles my mind that people invest in a franchise that doesn’t disclose earnings information.”

In its Franchisee Satisfaction Index, Franchise Business Review’s survey of nearly 50,000 current franchisees gauges earnings satisfaction. “In our 2008 survey, we found the average satisfaction rating on financial expectations in the retail franchise sector was 57 percent,” says Stites. “IABC franchisees note a 77 percent satisfaction rating, 20 percent higher than average, landing IABC solidly within the top quarter of this key category.”

With high franchisee satisfaction, record growth and increasing revenue, IABC is poised to lead the retail battery category which analysts project will reach $73 billion by 2010.