Franchise Disclosure Document: The 10 Most Important Sections

Описание: Thinking about buying a franchise? Before you sign anything, you need to understand the Franchise Disclosure Document (FDD). It’s 100+ pages of legal jargon—but hidden inside are clues that will determine whether your investment pays off or crashes and burns.

In this video, I break down the top 10 most important items in the FDD that every entrepreneur and investor should review. From hidden fees to legal red flags, I’ll walk you through how to interpret each section, what questions to ask, and how to validate what the franchisor tells you.

Skip the overwhelm. This is your no-BS guide to franchise due diligence.

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Timestamps:
0:00 - Why the FDD Matters
1:02 - What the FDD Actually Is
2:00 - Item 1: Who You're Doing Business With
2:26 - Item 2: Leadership Team Background
3:02 - Item 3: Legal History & Lawsuits
3:44 - Item 5, 6, 7: Startup & Ongoing Fees
5:15 - Item 8: Approved Vendors & Profit Incentives
6:17 - Item 12: Territory Protection
6:42 - Item 19: How Much Money You Might Make
8:38 - Item 20: Real Franchisee Data + Validation
10:22 - Why Talking to Franchisees is Crucial
11:03 - Final Thoughts + Next Steps