What is a franchise disclosure document?

The Franchise Disclosure Document (FFD) is an important legal document that franchisor’s must give to potential franchisees before signing a franchise agreement. The Federal Trade Commissions governs the contents of the FDD. The FTC rules cover twenty-three specific disclosure items.

A franchisor needs to provide the FDD (formerly known as the uniform franchise disclosure document) 14 calendar days before the potential franchisee pays any fees or signs a contract.

The Franchise disclosure document is a product of the dark days of franchising when salesmen would greatly inflate the sales projections upon unsuspecting business owners.… Read the rest

Top questions to ask an existing franchisee before you buy a franchise

Considering buying a franchise? Ask existing franchisee operators about the business before you become a franchisee. The last thing you want is to become another unhappy franchisee. 

It is important to do your due diligence before you sign the franchise agreement. Naturally, you will ask the franchisor questions about the franchise, but it’s equally important to converse with owners already in the business. Once you have made a commitment to explore the franchise opportunity (and are not just tire kicking) you should develop a plan to speak with existing franchisees.Read the rest