Where to get Franchise Disclosure Documents
If you’re looking into buying a franchise business then you may have heard of a little report referred to as the Franchise Disclosure Document, but you may not know all to much about what this report is and where to go to get it. What follow will help explain all that!
What is a Franchise Disclosure Document?
The Franchise Disclosure Document (FDD) is perhaps the most important piece of literature for anyone thinking of buying a franchise business. It is an report that all franchises are required to file annually in each state for which they’ll be offering franchises for sale.
Why every franchise buyers should get a copy of the FDD
The reason why the franchise disclosure document is so important for prospective franchisees to review is two-fold.
First, it is packed with all kinds (usually 100s of pages) of useful information on the franchise you’re looking at buying. The information contained in the FDD is not the same information you’ll get from a franchise sales representative. That’s because the FDD contains information that the franchisor is required to disclose, this includes lawsuits that the franchise system is or has been involved in, franchisee bankruptcies, Financial Performance Representations (earnings claims), territory information, details on the training program offered to new franchisees, explanations of what is expected of the franchisee and what the franchisee can expect of the franchisor, and much, much more.
The second reason that the FDD is so important to review before buying a franchise, is because in it you can find all the agreements and contracts that you’ll be required to sign should you decide to purchase the franchise you’re investigating. This includes the Official Franchise Agreement itself, along with other contracts.
How to get the Franchise Disclosure Document
To get franchise disclosure documents for franchises you’re looking into buying is notoriously difficult without the assistance of a (business acquisition) attorney. That’s no longer the case thanks franchise buyer information services like FranchiseComplaints.org. You can now get the franchise disclosure document of any franchisor you want delivered strait to your inbox. FranchiseComplaints.org has made it a company objective to make franchise reports, disclosure documents and other important copies of franchise disclosure documents to download.
Originally published at storify.com.