Added: Dec 5, 2008
From: ygmfranchise
Duration: 1:5
FRANCHISE DISCLOSURE DOCUMENT DEFINEDThe Federal Trade Commission (FTC) requires Franchisors and business opportunity sellers to provide to a prospective franchisee a Franchise Disclosure Document (FDD). The FDD reveals important information about the Franchisor, the franchised business and the franchise relationship. It explains the Franchise Agreement, and should be written in simple English. Take your time reading it. When a prospective franchisee first meets a franchisor the franchisee should be presented this Franchise Disclosure Document. The prospective franchisee needs to date and sign the last two pages (Exhibit L) and give them to the franchisor. This doesn't create a contract, all it does it documents when the prospective franchisee took possession of the FDD. The FTC wants you to use these 14 calendar days to read the FDD from cover to cover.I encourage you to use a highlighter and a pen to explore your Franchise Disclosure Document. Take notes & record your questions in the margins. Don't worry about making a mess of it...you will get a new one if you and the franchisor both agree to execute a Franchise Agreement. Call your Franchisor to explain anything that you are uncertain of.
Channel: Howto
Tags: agreement commission dance disclosure document fdd federal franchise franchisee ftc trade
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