The first step towards purchasing a franchise should be hiring a franchise lawyer equipped with the knowledge and understanding of the intricacies and details of the procedure to help you overcome any arising issues.

Though a bit of research has to be conducted by you to assure that the company you have chosen to franchise represents your sets of value, you would have to indulge in asking a series of questions that would strengthen your decision furthermore.

While the franchise attorney is responsible for unearthing every economic and industry-specific detail that there is to know about the franchise, some issues underlying the aspect can only be answered through rigorous inquiry.

In Case You Don't Know What These Questions Are, We Have Accumulated Several Questions That You Need To Ask Your Franchise Lawyer Before Moving Onto The Part Of 'purchasing' It…

● Is the franchise properly disclosed with the compliant FDD?

The FTC Rule compels the franchisor to disclose certain facts regarding their business model and their experience in the 32-item document, known as Franchise Disclosure Document or FDD. After the document is filled out, they will be required to wait for fourteen days before you sign the agreement.

● Was the FDD registered with the state?

Many states compel the interested party to register to their FFDs before offering the party the proposal to sell the prospects. So asking this question to analyze the significance and where the deal stands is a significant factor.

● Was the FDD properly updated before being handed to me?

Generally, the FTC requires the interested franchisors to revise their FDD annually. It is done within 120 days of the fiscal year to maintain the legalization of the whole aspect. A typical fiscal year morally ends on December 31st, making the deadline for the renewal to be April 30. One has to be done with the renewal process within April 30th.

Tips: here is a tip for you, if you are given the FDD in march, we recommend you to wait until the annual FDD, that is, the renewed version of it is released. Then move forward with the way you planned it out.

● Are there any others who hold proper information regarding the franchisor?

All the FDDs are considered to include the contact information of the current as well as former franchisees.

Tip: We recommend getting all the ins and outs of the business from the existing franchisees. With the courteous help of the current franchisees, you will have gained a fresh perspective on how the franchise system works firsthand.

● How much will the whole thing cost me?

To generally know the cost of the whole procedure, you are required to ask the franchise lawyer to go over the initial and additional fees, along with the estimated amount of the initial investment to you. Even a ballpark amount will be sufficient here as it will help you to prepare yourself monetarily.

Conclusion:

The inclusion of financial performance into the study or the report is an important aspect that will help you later. Ask your franchise lawyer to note the basic information to meet an effective result.