What Franchise Information Should Especially Be Noted?
The Franchise Disclosure Document contains a lot of information. You may not receive it the first time you meet, but you must get it 14 calendar days prior to signing any agreement. Also, any actual agreement must be given to you five calendar days before signing. Some information you want to especially look at is the history of the company and what kind of litigation has there been in the past – or is taking place now. Obviously, if it is facing large lawsuits – then the franchisor may be in danger of going out of business. You will want to be sure to notice information about the franchisees. This information will tell you how long franchisees stay with the company, and if any franchisees have been terminated – and why. You can also learn how many new franchises have been started recently and how many have closed. This information, along with the financial information, will enable you to see the overall trend of what is happening with the company, and whether or not franchisees are ge
