Join Phil Harvey, founder of Prosperity Services, as he runs through the fundamentals of franchise disclosure documentation. In this video, you will learn more about the franchise business model from an expert’s point of view, how the documentation process works, and receive a brief yet informative technical overview.
TRANSCRIPT:
Phil Harvey here with Prosperity Services. We’re going to talk about the exciting topic of franchise disclosure documents, or FDD. Now, it’s a document, so how exciting can it be? Well, let me tell you, it’s everything. It’s got the complete details of a franchise that’s being offered to you.
It’s in a certain format that is required by the Federal Trade Commission or FTC. And so every franchise concept that you explore will have a very similar document. So it will become easier to read and understand as you look at your second and third concepts. When you have questions about the franchise disclosure document, the first stop should be back to the franchise or each franchise that you will talk to and who will provide you with a franchise disclosure document will walk you through their concept, specifically walking you through the FDD document itself, explaining what key section information means and answering questions as you may have them. Certainly, if you have a franchise consultant working with you, they should be able to help you understand and to compare and contrast what the information means, especially when looking at multiple concepts.
There is no more important document when you’re initially evaluating a franchise concept than FDD, so embrace it. Feel comfortable if you’re a little bit uneasy about it, and make sure you ask lots of questions. It is a great tool, and you should feel very comfortable after reading your first and your second, and your third will go just fine. Bye.
