Before looking at brands, you must evaluate your own goals, strengths, and financial capacity.
The FDD is a federally mandated document that a franchisor must provide at least before you sign any contract or pay any money. It contains 23 specific items, including:
: Litigation and bankruptcy history of the franchisor. how do you buy into a franchise
: Calculate your total available capital. This must cover not just the initial franchise fee, but also site build-outs, inventory, and several months of operating capital.
: Use tools like Franchise Business Review or attend franchise expos to compare different models. 2. The Franchise Disclosure Document (FDD) Before looking at brands, you must evaluate your
: Financial performance representations (earnings claims), which are critical for building your business plan.
: Determine the industry, lifestyle, and day-to-day role you want (e.g., hands-on owner-operator vs. semi-absentee manager). : Calculate your total available capital
: A list of current and former franchisees, whom you should contact to verify the franchisor’s claims. Getting Started in Franchising