When researching franchise opportunities, it’s important to examine Item 19 in a franchisor’s Franchise Disclosure Document (FDD). Indeed, the first question most prospective franchisees ask a franchisor is, “How much money can I make in this business?” Since the U.S. Federal Trade Commission (FTC) passed the franchise compliance rules in 1979, some franchise companies may…

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Evaluating the information in a Franchise Disclosure Document (FDD) is a critical part of investigating a franchise opportunity. It’s helpful to have a few quick ways to assess whether the franchise is one to avoid. Here are 4 ways to spot clues in a Franchise Disclosure Document that may indicate problems ahead. These tests will help…

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