Do I Need my FDD Reviewed?
Any prospective franchisee will receive a Franchise Disclosure Document (FDD) from the franchisor which explains and details the franchise offering. This document is an important source of information in your decision to move forward with the franchise system or not. It is important to recognize that the FDD is your chance to dig into the potential business relationship before signing on the dotted line. The FDD provides a full picture of the franchise model, the business relationships, and the obligations both you and the franchisor will be responsible for. Finding a professional
An FDD is robust and comprehensive but can be difficult to read for most people, often reaching into 200+ pages of legalese and financial language. Finding a professional to help you comprehend the legal obligations can be an important protection against unfair or unwieldy agreements. Some franchisors, typically newer systems, attempt to insert some unfair provisions in the franchise agreement. While these must be disclosed, should an untrained eye not catch the obligation, you will legally be held to the contract.
An experienced franchise attorney can help you recognize and negotiate the warning flags that are apparent in the FDD. Franchise agreements are often for 10 to 20 years, an important financial obligation such as that needs to be fully comprehended before you sign on the dotted line. Don’t be one of those unsuccessful people who invest hundred of thousands of dollars and several years of effort without consulting an experienced attorney.
While many franchisors publicly state there is no negotiation on much of the FA, you will be surprised what kind of provisions you can have adjusted to protect your franchise and yourself. Many smaller franchisors are very open to a good faith negotiation to help make their franchisees and system successful.
Call Reidel Law Firm today at (832)510-3292 for an experienced franchise professional to guide you through your FDD and other important franchising documents. Or use the email button below.