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Key Takeaways Know what you’re signing. Review the FDD with an attorney and ask questions before committing.
Follow the system. Franchising works best when franchisees stick to the brand’s proven model.
Relationships matter. Strong communication and support are just as important as the contract itself.
Let’s face it. There’s nothing fun or entertaining about a Financial Disclosure Document (FDD), which your prospective franchisor is legally required to provide, so you will have full transparency into the deal you’re considering. It’s a contract, with page after page of dry, densely composed legal language for your attorney to wade through and explain.
Like all contracts, the FDD is a roadmap to the kind of business relationship you will have with your franchisor. Different areas are important to different people, but there are some critical concerns to look for with your attorney. They can identify potential red flags and explain the pros and cons, but it’s up to you to ask the franchisor to clarify any provisions or questions until you’re satisfied with the answers.
The agreement length
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