Tag Archives | FDD

It’s That Time Again – Renewal Season 2013!

Each franchisor must renew the registration of its franchise disclosure document (FDD) annually. The rule in most registration states, as well as under the FTC’s Franchise Rule, which governs the sale of franchises in the non-registration states, is that a franchisor must update its FDD within 120 days of its fiscal year end, or discontinue […]

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How to make Sense of the Franchise Disclosure Document

Becoming a franchisee isn’t like starting a business in your garage. For one thing, you don’t have to invent everything as you go along; when signing up with many franchisors, you buy a complete business system invented by someone else – for example, McDonald’s method of flipping burgers. For another, assuming you sign on with […]

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Common Sense on Item 19

Believe it or not, the courts are capable of exercising common sense when it comes to the one element in the Franchise Disclosure Document that, if sloppily written, can make a plaintiff’s attorneys salivate – Item 19. Item 19 is where prospective franchisees think they may find the answer to the question: How much money […]

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