Helping Franchisees Understand the FDD & Franchise Agreement
JM LAW GROUP’s FDD Review Team has been reviewing and negotiating franchise agreements on behalf of franchisees for decades.
As a prospective franchisee, the franchisor will provide you with its Franchise Disclosure Document (FDD). The FDD discloses important information about the franchise concept as well as the franchisor. While the review of an FDD is a necessary component of your due diligence in evaluating the franchise concept, it can also be a very long document (often over 200 pages) containing language that may be difficult to understand.
The FDD Review Process
Many of our FDD reviews follow a similar process:
- Initial Review: Our FDD Review Team will take the time to read through the FDD with a keen eye for specific legal and financial obligations that you will incur as a franchisee.
- Client Meeting: Once our review is complete, the seasoned attorney handling your review will reach out to schedule a date and time to review the FDD in detail via phone or Zoom call. The goal of this call is to go through the key terms of the FDD (including the Franchise Agreement) and answer your questions or address concerns.
- Franchisor Follow-Up: After your review call, there is typically some additional follow-up on with the franchisor. We are available to the client for any subsequent phone calls or emails regarding these open items.
- Addendums: Finally, our review process will include drafting and finalizing an Addendum to the Franchise Agreement if one is necessary (and the franchisor is willing to negotiate terms).
Ultimately, the franchise agreement governs the relationship between the franchisee and the franchisor. Our job is to help explain in plain English what your rights, obligations and potential liabilities will be under the Franchise Agreement; and, when possible, to negotiate certain concessions from the franchisor to your benefit.
Through our years of experience in reviewing hundreds of FDD documents in numerous sectors including health and wellness, fast-casual dining, home improvement, clothing/fashion, professional services, entertainment, education and beauty, we are prepared to help you navigate the FDD so that you are ready to make the most informed decision possible.
Talk to Our Franchise Agreement & FDD Review Lawyers
If you are considering acquiring a franchise, it’s essential to have experienced franchise contract lawyers review your franchise documents before signing. Contact JM LAW GROUP today to get the process started.