Franchising

A franchisor will send you the company’s Franchise Disclosure Document (FDD) once you have filled out an application and indicated serious interest in the franchise.

The FDD very clearly defines what the franchisor will do for you and what s/he expects of you. There are 23 important parts to review.

The Federal Trade Commission (FTC) protects franchisee prospects up until the point of sale, but once the franchise is purchased, the FTC looks upon the business as any other start up so the UFOC becomes vitally important in providing you protection at this point.

DocumentA franchisor will send you the company’s Franchise Disclosure Document (FDD) once you have filled out an application and indicated serious interest in the franchise.

The FDD very clearly defines what the franchisor will do for you and what s/he expects of you. There are 23 important parts to review.

About the Author

Betty Otte HeadshotBetty volunteers her time as a SCORE district director for Orange, Riverside and San Bernardino Counties in Southern California. She also serves as a SCORE counselor and mentor for Orange County SCORE, which provides free business mentoring and low-cost workshops to aspiring and existing small business owners in the Santa Ana area. Betty is a member of the national SCORE Advisory Council. Betty is an entrepreneur with an executive Harvard MBA and 16 years of franchise experience. She ran her own marketing consulting company, and built a franchise network from one to 22 units. During her extensive career, she owned, operated, grew and sold numerous franchises. She is also a marketing and management expert.

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