Understanding The Franchise Disclosure Document (FDD) From A To Franchisee: The Podcast For Smarter Franchise Buying podcast

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Understanding the Franchise Disclosure Document (FDD)

16d ago 57:58

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Host: Michelle Rowan, President and COO of Franchise Business Review

Guest: Tom Spadea, Franchise Attorney of Spadea Lignana LLC

Episode Summary

In this insightful episode, Michelle Rowan and franchise attorney Tom Spadea delve into the intricacies of the Franchise Disclosure Document (FDD). They explore its critical components, such as litigation history, initial fees, and financial performance representations, offering valuable advice for prospective franchisees. Tom shares his journey into franchising, emphasizing the importance of understanding both the franchisor's and franchisee's roles. The conversation highlights the significance of due diligence, financial planning, and the relationship dynamics within franchising, providing listeners with essential guidance for making informed decisions in the franchise world.

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Chapters

1. Understanding the FDD (00:00:00)

2. Tom's Journey Into Franchising (00:02:13)

3. The Role of Franchise Attorneys (00:05:52)

4. Defining the Franchise Disclosure Document (FDD) (00:10:38)

5. Litigation History and Its Implications (00:13:03)

6. Item 3 - Disclosing Lawsuits (00:15:41)

7. Item 5 - Initial Fees (00:18:21)

8. Item 6 - Other Fees (00:20:18)

9. Item 7 - The Initial Investment Disclosure (00:23:18)

10. Item 19: Financial Performance Representation (00:26:15)

11. Item 19: Financial Performance Representation (00:27:59)

12. Item 20: Status of Outlets (00:35:32)

13. Item 21: Evaluating the Franchisor's Financials (00:49:13)

14. Red Flags and Cautionary Advice for Franchise Candidates (00:53:11)

12 episodes