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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What can you learn from a Franchise Disclosure Document (FDD)? History of the FDD Until the 1960s, there was little franchising momentum in the United States. But after the success of McDonald’s, the franchise industry expanded rapidly. In 1979, the Federal Trade Commission’s Franchise Rule became effective. It required franchisors to provide potential franchisees with…

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