FRANCHISE DISCLOSURE DOCUMENT (FDD): EXPLAINED

If you’re looking for a franchise opportunity, these are the two questions that you should be asking yourself: how much do I need to invest, and how much can I potentially make? Understandably, these will be your most important considerations when deciding on a franchise – but it’s essential to seek answers from the franchisor themselves. They should be able to provide you with a comprehensive breakdown of the investment required, and an overview of the ROI you can expect. They will also be able to advise on any subsidies or financing options that may be available. Ultimately, your return on investment is dependent on several factors such as location and business acumen – but it’s worth researching thoroughly before you commit. With the right franchise and your own hard work, you can make a sound financial investment and have an incredibly rewarding career! Good luck with your decision making process!

• Item 5: Discloses initial costs associated with becoming a franchisee, including the franchise fee, multi-unit fees and more
• Item 6: Describes any ongoing or recurring fees like royalties, advertising fees, etc.
• Item 7: Outlines the total initial investment, including start-up costs and the fees disclosed in Item 5
• Item 10: Provides information about the franchisor’s available financing options
• Item 19: (Not required) if listed, provides information about a unit’s average financial performance
• Item 21: Discloses audited financial statements of the past three years

At REFRESH, we understand that the best part of franchising is having access to a renowned brand and established operational systems, including training and support. We are proud to offer comprehensive post-franchising assistance to our franchisees, so they can focus on growing their business. Our team of experts is on hand to provide training and guidance when needed, ensuring franchisee success. With REFRESH, you can rest assured that all your franchise needs will be taken care of. Join us today and experience the REFRESH franchising difference.

• Item 8: Outlines supply sources and discloses any restrictions regarding the source of products/services
• Item 11: Provides details about any ongoing support, including training, operations, technology
• Item 12: Describes and defines market territories and protections that come with exclusive territories
• Item 13: Outlines the franchisor’s trademarks, service names or trade names
• Item 14: Provides a list of patents, copyrights or any proprietary information
• Item 16: Describes any restrictions on the goods or services a franchisee can offer customers
• Item 17: Covers the process of renewing the franchise fee, transfer options, grounds for termination, as well as outlines the rights and restrictions during a disagreement between franchisee and franchisor
• Item 18: Details if the franchisor partners with public figures like celebrities to advertise products/services; reveals how much the public figure is paid

The franchisor’s history is an important part of evaluating any franchise opportunity. A thorough review will provide a comprehensive look at the franchisor’s past operations and financials, as well as any issues they may have faced in the past. This can include bankruptcies, litigation cases, and any other red flags that may indicate potential risks for franchisees. Taking the time to understand the franchisor’s history can help you make an informed decision about the franchise opportunity.

• Item 1: Gives an overview of the franchisor history, including its parent company, predecessors and affiliates
• Item 2: Describes the executive team and board of directors’ professional experience
• Item 3: Provides a list of past and current criminal or civil litigation cases
• Item 4: Recognizes if the franchisor or founder has ever faced bankruptcies
• Item 20: Lists the locations and contact information of past and current franchisees

Franchisees should be aware of the obligations that come with a franchise agreement. These include fulfilling their contractual duties, abiding by all local, state and federal laws, paying the required fees on time, and other conditions as outlined in the agreement. It is important for franchisees to remain in compliance with their obligations to maintain a successful business. Failure to do so can put the franchisee at risk of losing the agreement and facing potential legal action. For this reason, franchisees should be aware of all their obligations before signing a franchise agreement.

By understanding and fulfilling the obligations outlined in the agreement, franchisees can ensure that their business is successful and well-managed. Through diligent effort and commitment to fulfilling their obligations, they can ensure that they remain in compliance with the agreement and enjoy their rights as a franchisee. Understanding and fulfilling these obligations is essential for any successful business.

• Item 9: Provides a reference table indicating where to find obligatory duties in the franchise agreement
• Item 15: Discloses expectations regarding participation and operation of the business
• Item 22: Lists any and all documents the franchisee is required to sign
• Item 23: A receipt signed by the prospective franchisee that confirms they received the FDD