DIVING INTO THE FRANCHISE DISCLOSURE DOCUMENT
Focus on quality - not quantity
Every year franchises are by law required to report on their successes and failures. This is for your protection and can be found in the Franchise Disclosure Document (FDD).
Getting into and understanding a 300 hundred page legal document, knowing what warning signs are, knowing what is normal and not normal, and understanding how and why they are presenting the data the way they do is not something you learn overnight.
Even the most successful business people struggle with deciphering the data within an FDD.
Many potential disasters can also be avoided by having a franchise attorney review a franchises FDD. They are prepared on what to look for far better than a typical attorney.
Additional ways you can get the real story
The answers are often hiding in plain sight. Here are some of the ways to go about getting these answers.
- Conduct multiple interviews with existing franchisees
- Understand your target market based on facts
- Have an actual franchise attorney review the Disclosures (FDD)
- Understand how the franchise compares to other similar franchises