FDD Reviews:
Making Sure You Don’t Buy a Lemon!

POV: You’re interested in buying a franchise and were just given a lengthy, dense, and filled-with-legalese document called a Franchise Disclosure Document. You’re unsure where to start, what it all means, and are looking for guidance.

Let Me Help You

The sales team from the Franchisor might not tell you all of the details of franchise ownership that could impact the success of the business, and ultimately, your investment. 

An independent FDD review from an experienced franchise attorney (me!) can help you make an informed decision, without a bias or motive.

Some franchisors require purchasing supplies (like lemons) from them (and at their prices), which can hurt your profitability.

Can the franchisor force you to sell your franchise? Depends!

How litigious is the franchisor? Do they sue their franchisees? Over what? Do they win?

Some franchisors will make your spouse sign a document making them financially responsible for the franchise’s performance, even if they have nothing to do with the business.

Flat-Rate Pricing

What’s Included:

  • My detailed review of the FDD, including the Franchise Agreement and applicable exhibits.

  • A post-review meeting, either by phone, video call, or in-person (Phoenix area) where we discuss my findings. This usually lasts about one hour.

  • A marked-up version of the Franchise Agreement and/or FDD with my notes, comments, and highlights for your use.

  • My analysis and/or “score” of the franchise opportunity based on my knowledge of the industry and similar franchises.

  • Recommended next steps, whether you decide to move forward with the franchise purchase or not.

Our fee agreement will have a detailed list of the tasks that are included and not included in the review.

Pricing:

Flat rate pricing ranges from $2,000 to $4,500 for the FDD review. Pricing is based on two factors: (1) the total number of units and (2) if a commercial space is required i.e., restaurants, gyms, salons. In my experience, franchises that require a commercial lease and have a lot of units i.e., a nationally-recognized brand, require more time to thoroughly review the FDD compared to a smaller opportunity.