The FDD - Franchise Disclosure Document and Franchise Agreement isn't so scary; in fact, it is typically a standardized document brimming with franchise information
Ft. Lauderdale, FL -- Young entrepreneurs who are looking to enter the world of franchising have learned a lot of valuable information by working with Rick Bisio, a highly respected franchise consultant and mentor for franchisees in training. Rick teaches his students all about researching franchises and choosing one that is right for them.
Rick has discovered that many students are intimidated at the thought of reading and understanding the franchise contract. In one of his recent mentoring sessions, Rick explained, "Though the contract may seem to be very heavy on legal terms it is not so difficult to understand once you know what you are looking for in the agreement. The franchisor is required to share franchise information in a clear and transparent fashion; in turn, the franchisee clearly knows their rights and will be expected to meet the same standards"
Rick went over all the items included in the FDD, including details about initial investment and franchise fees; property requirements, location, building, equipment and supplies; a definition of operating practices to protect the franchise system, training and support offered by the franchisor, advertising cost and responsibility, royalties, bookkeeping requirements, and more. Rick said, "I hope that all of you pay very special attention to this part of the franchise agreement; a lot of this section is negotiable. I recommend that everyone read Chapter 7 of The Educated Franchisee Book to learn more about franchise agreements."
Rick concluded by reminding the students that studying the franchise contract is an important part of their franchise education. "Check each section carefully and make sure you understand each item and how it impacts you. A sound franchisor will spend the necessary time with you to be sure you are comfortable with these documents. Fear is normal at this stage of the transaction; let it push you to seek the information you need to make the right decision for you."
As one of the most respected franchise consultants in the United States, Rick Bisio has guided thousands of people to great decisions regarding business ownership and franchising. Rick has owned both franchised and non-franchised businesses. He has bought, sold and invested in businesses and worked as an advisor to others seeking the same. Rick is the author of the book, The Educated Franchisee; and he has a newsletter which you can subscribe to at http://www.educatedfranchisee.com
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