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12 Δεκ 2022 · After years of practice, I can scan them for red flags and promising opportunities fairly quickly. This table offers basic understanding of the 23 items, which you’ll need in order to appreciate the types of red flags that I look for: How to Read a Franchise Disclosure Document like a Pro
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Understanding how to properly read and analyze the franchisor's required documentation, the Franchise Disclosure Document (FDD), is one of the most important activities you will perform in your franchise selection process.
Franchise disclosure documents are legally mandated by the Federal Trade Commission (FTC). Buying a franchise and becoming a successful franchisee requires you to read the FDD for your selected brand carefully and clearly understand its terms before entering into a legal relationship.
In the Franchise Disclosure Document, the Business Experience and Litigation section provides essential information about the franchisor's past and present legal entanglements. This section discloses any previous litigation history, highlighting potential red flags for prospective franchisees.
23 Ιουλ 2018 · When it comes to franchising, there are several areas where a franchise candidate should look for red flags. The following list indicates eight items in an FDD where a red flag can be identified.
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