Franchisor Blunders, No Wonder Buyers Don’t Read FDDs

The Franchise Disclosure Document (FDD) should be seen by franchisors, their attorneys and state and federal regulators as the most valuable tool for perspective buyers prior to making their decision as to where they want to invest their money into a franchise. The 200-, 300-, or even 500-page document should contain pertinent data and financials about the system, and what protections are given to franchisees in making their investment of tens or hundreds of thousands of dollars.

When franchisors and their legal counsel get it wrong in the company's FDD, making errors, misrepresentations and omissions, it can cause turmoil, financial devastation, and costly litigation for franchisees.


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