Item #4 is probably the most straightforward item in the entire FDD and none of its contents should really come as a surprise. Bankruptcies are public record so any history of bankruptcy within the franchise should come up during your initial research, if you’re doing your due diligence. Nonetheless, Item

Moving right along, this week’s focus is on Item #3 of the Franchise Disclosure Document; Litigation involving the company. The purpose of this line item is pretty straightforward. It reveals whether or not the franchise is suing, being sued, or has a history of doing either. What You’ll Learn About:

Item #2 – Franchise Executives Experience Last week we discussed Item #1 of the Franchise Disclosure Document (FDD), which covers the company’s ownership and history. Item #2 takes that a step further to give you an in-depth look at the business experience of the franchises top executives and management staff,

Before you officially become a franchisee and sign your franchise agreement, the Federal Trade Commission requires that you receive a Franchise Disclosure Document (FDD) from the franchisor. A mound of legalese, this document contains 23 critical ‘Items,’ all designed to make you a more knowledgeable franchise buyer. So, while daunting,