If you’re ready to invest in a Signarama franchise, but need to find out more about all the various details, obligations and other information about your investment, we recommend you take a look at your Franchise Disclosure Document (FDD). If you are unsure exactly what an FDD does, or entails, we’ve put together a couple of pointers for you to help better acquaint you with the document.

What is an Franchise Disclosure Document?

The Franchise Disclosure document, is a legal document that has to be provided to you by the franchisor – according to the regulations of the Federal Trade Commission. The purpose of the FDD is to provide you with all the information you will need to make an informed decision regarding investing in a franchise.

This means that the FDD will contain background information of the franchisor, the costs involved in investing in the business, any legal obligations of both the franchisee and franchisor, any and all relevant business statistics, and audited financial information.

When to expect aFranchise Disclosure Document

According to the regulations of the Federal Trade Commission, you must be presented with an FDD at least 14 days before you enter into a franchise agreement with the franchisor. It is possible for you to request an FDD at an earlier stage, and it is important to remember that franchisors may not charge you a fee for early delivery of an FDD.

What you should do with yourFranchise Disclosure Document

An FDD is a lengthy legal document, usually between 100 to 200 pages, and contains legalese and financial information you might not be able to interpret accurately on your own. We recommend you engage the services of a franchise lawyer, who will be able to help you make sense of the document. You should also give the document to an accountant, as they will be able to give you a clear indication of whether your investment will yield the returns you want.

If you need any more information about an FDD, or want to know how you can join the Signarama team, please download our [CTA incomplete on spreadsheet] today.

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