What Disclosures Am I Entitled to When I Consider Buying a Franchise?

A Video FAQ with Mark A. Williams.

If you are looking to buy a franchise, you should receive something called a Franchise Disclosure Document. That is going to be a big document. Usually it comes in a 3-ring binder, almost like a book, and that is going to have the franchise agreement in it. It is also going to have a bunch of information about the operational history of the franchise. So they have to tell you things like how long they have been in business, whether other franchisees have sued them before and what kind of disputes they are in, how many franchises they have open and where they are located at. It is a document that has to be filed with the state. It is usually approved by regulators and it is there to make sure you have enough information to make an intelligent choice about whether you really want to buy into that franchise.

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