{"id":2942,"date":"2013-11-05T12:07:50","date_gmt":"2013-11-05T16:07:50","guid":{"rendered":"https:\/\/www.franchisesolutions.com\/blog\/?p=2942"},"modified":"2018-02-13T10:55:50","modified_gmt":"2018-02-13T15:55:50","slug":"tip-tuesday-fdd","status":"publish","type":"post","link":"https:\/\/www.franchisesolutions.com\/blog\/2013-11\/tip-tuesday-fdd\/","title":{"rendered":"Tip Tuesday \u2013 What to look for in a FDD"},"content":{"rendered":"<p><a href=\"https:\/\/www.franchisesolutions.com\/about_us.cfm\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-2945\" src=\"https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2013\/11\/couple-contract-300x215.jpg\" alt=\"couple-contract\" width=\"300\" height=\"215\" srcset=\"https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2013\/11\/couple-contract-300x215.jpg 300w, https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2013\/11\/couple-contract.jpg 471w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Before you sign an agreement with a franchise company the Federal Trade Commission mandates that they send you a <a href=\"https:\/\/www.franchisesolutions.com\/blog\/?p=4318&amp;preview=true\">Franchise Disclosure Document<\/a> (FDD). This is an in-depth document that outlines everything you need to know about the franchise company and your future potential business.<\/p>\n<p>Here are some things to make note of when you review a Franchise Disclosure Document:<\/p>\n<ul>\n<li>Make note if a trademark is not registered<\/li>\n<li>Lack of litigation\u2019s filed by franchisee\u2019s claiming fraud or misrepresentation on the part of the franchisor is a good thing<\/li>\n<li>Understand that the item 19 (earnings claims) may only represent a certain percentage of the franchise system and can contain corporate owned locations<\/li>\n<li>Take caution if a franchisor is getting major rebates from suppliers that franchisees are obligated to buy from<\/li>\n<li>Understand and beware of terminology such as \u201cat our discretion\u201d\u00a0 or flexible statements that allow the franchisor to change the agreement for any reason<\/li>\n<li>Clarify territory promises and the duration of them. Many times territory protection is only for the life of the agreement and has to be re-negotiated when you renew.<\/li>\n<li>Lack of a large number of closures of units is a good thing<\/li>\n<li>Beware of franchisors that cannot sustain themselves from royalties and need to rely heavily on new franchise sales<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"Before you sign an agreement with a franchise company the Federal Trade Commission mandates that they send you a Franchise Disclosure Document (FDD). This is an in-depth document that outlines everything you need to know about the franchise company and your future potential business. Here are some things to make note of when you review&#8230; <a class=\"view-article\" href=\"https:\/\/www.franchisesolutions.com\/blog\/2013-11\/tip-tuesday-fdd\/\">Read More &raquo;<\/a>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,17,19,20],"tags":[725,170,726],"class_list":["post-2942","post","type-post","status-publish","format-standard","hentry","category-buying-a-franchise","category-franchise-industry","category-franchise-resources","category-franchising","tag-fdd","tag-franchise-agreement","tag-franchise-disclosure-document"],"yoast_head":"\n<title>What to look for in a Franchise Disclosure Document<\/title>\n<meta name=\"description\" content=\"Before you sign an agreement with a franchise company the FTC mandates that they send you a Franchise Disclosure Document (FDD). Here are some things to you need to know before you review a Franchise Disclosure Document.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.franchisesolutions.com\/blog\/2013-11\/tip-tuesday-fdd\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What to look for in a Franchise Disclosure Document\" \/>\n<meta property=\"og:description\" content=\"Before you sign an agreement with a franchise company the FTC mandates that they send you a Franchise Disclosure Document (FDD). Here are some things to you need to know before you review a Franchise Disclosure Document.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.franchisesolutions.com\/blog\/2013-11\/tip-tuesday-fdd\/\" \/>\n<meta property=\"og:site_name\" content=\"The Franchise Solutions Blog\" \/>\n<meta property=\"article:author\" content=\"http:\/\/www.facebook.com\/kelly.mangum2\" \/>\n<meta property=\"article:published_time\" content=\"2013-11-05T16:07:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-02-13T15:55:50+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2013\/11\/couple-contract-300x215.jpg\" \/>\n<meta name=\"author\" content=\"kelly\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/twitter.com\/mangumkelly\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"kelly\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n","yoast_head_json":{"title":"What to look for in a Franchise Disclosure Document","description":"Before you sign an agreement with a franchise company the FTC mandates that they send you a Franchise Disclosure Document (FDD). 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