Reviewing The FDD
Before buying a franchise, reviewing the FDD is a critical step of the due diligence process and should be done by an experienced attorney. The FDD is a legal disclosure document that the franchisor must provide to you no less than 14 days before you sign any agreement with the franchisor. This FDD is required by law to include 23 specific items about the business. The FDD will also have copies of the franchise agreement and any other paperwork that you are required to sign by the franchisor.
Before investing in any franchise, it is essential that you have your FDD reviewed by an experienced attorney. Attorney John Usher has years of experience not only as a franchise attorney but also as a franchisee himself. Our comprehensive, flat-rate FDD review will give you the insight to make the right decision.
Our Flat Rate FDD Review (Starting At $1800)
We price our FDD reviews with a flat rate upfront so you know what to expect. Pricing will depend on your situation but will remain the same once agreed upon. Our FDD reviews start at $1800 and includes the following:
- Comprehensive consultation call and information gathering
- A thorough analysis of the FDD with notes on each item and annotated copy for you to keep.
- A follow-up call to discuss findings and recommendations.
WHO READS THEIR FRANCHISE FDD?
A Franchise Disclosure Document, or FDD, is a long, complex, and highly subtle legal document carefully crafted by law firms hired by franchisors to act in the franchisor's best interests.
Unfortunately, FDDs often go unread by prospective franchisees. Many people choose to believe either (1) franchising is “safe” or (2) “I want to do it, and they won't negotiate anyway,” so why not just sign? Neither belief is a reasonable basis upon which to sacrifice a future potentially.
KNOW BEFORE YOU SIGN!
The only time to negotiate franchise terms is before signing. Before signing is also the absolute best time to say, “I do not understand this term,” because it may be too late if you have to ask later.
It's important to know that even though FDDs are required by the Federal Trade Commission to have a mandatory format, the FTC does not review or approve franchise offerings.
For various reasons, including Franchise Agreements that are designed to eliminate or at least significantly thwart any attempt by the franchisee to sue the Franchisor, there are limited remedies for franchisee victims. When buying a franchise, it is “buyer beware.”
OUR MISSION
We want to help franchise buyers make a fully informed franchise decision so they are positioned for long-term success
