Franchisors are pretty upfront about what it's going to cost to get you into their systems. But franchisors are bashful when it comes to talking about how much moolah franchisees can actually earn running their businesses. Instead, franchisors direct candidates to their Franchise Disclosure Document (FDD), the detailed prospectus they are required by law to give to interested parties.
This week on Franchising & You, Franchise Attorney, Tom Spadea discusses the infamous Item 19 Financial Performance Representation found in Franchise Disclosure Documents - What it is? What it represents? Is it accurate? Franchisor doesn't have one, now what?
Franchising & You airs every Saturday at 9:30 AM ET / 8:30 AM CT with each segment available on-demand.
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