Tips For Buying A Franchise

For a franchisee, the buying process can be difficult if not educated on the exact steps of getting from inquiry to purchase. Many franchisors include proposed steps to ownership, but rarely do they include in depth guidance.

As a part of 1851&rsquo;s Guide to Buying a Franchise issue, we interviewed Steve Beagelman, CEO of <a href="https://smbfranchising.1851franchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">SMB Franchise Advisors</a>, on what the franchisee and the franchisor should know about the franchise disclosure document.

A&nbsp;franchise disclosure document&nbsp;(FDD) is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the United States.

Both would-be buyers and franchisors need to know that some states require different regulations for the FDD.

Charles Internicola, a national franchise attorney from <a href="http://www.franchiselawsolutions.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">Internicola Law Firm</a>, wrote in this <a href="http://www.franchiselawsolutions.com/blog/the-franchise-registration-states/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">article that</a>: While&nbsp;Federal Law&nbsp;provides an overriding framework regulating the offer and sale of franchises throughout the entire country, fifteen states have enacted their own franchise laws that, supplement and add additional regulations to be followed by franchisors. In thirteen of the states, registration of the franchisors Franchise Disclosure Document (FDD)&nbsp;is required.

The states that include registration are as follows:

States that have Enacted Supplemental Franchise Laws&nbsp;and&nbsp;Require Registration of a Franchise Disclosure Document:

<ul style="margin-left: 40px;">
	<li>California</li>
	<li>Hawaii</li>
	<li>Indiana</li>
	<li>Maryland</li>
	<li>Michigan</li>
	<li>Minnesota</li>
	<li>New York</li>
	<li>North Dakota</li>
	<li>Rhode Island</li>
	<li>Virginia</li>
	<li>Washington</li>
	<li>Wisconsin</li>
</ul>

States that have Enacted Supplemental Franchise Laws but&nbsp;do not&nbsp;Require Registration of a Franchise Disclosure Document:

<ul style="margin-left: 40px;">
	<li>Michigan (only notice)</li>
	<li>Oregon (no filing)</li>
	<li>South Dakota (filing only)</li>
</ul>

More information about the FDD can be found at these sites:

<ul style="margin-left: 40px;">
	<li><a href="https://www.ftc.gov/tips-advice/business-center/guidance/consumers-guide-buying-franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">https://www.ftc.gov/tips-advice/business-center/guidance/consumers-guide-buying-franchise</a></li>
	<li><a href="https://www.franchisesolutions.com/blog/index.php/2013-11/tip-tuesday-fdd/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">https://www.franchisesolutions.com/blog/index.php/2013-11/tip-tuesday-fdd/</a></li>
	<li><a href="https://www.franchisesolutions.com/blog/index.php/2013-11/tip-tuesday-fdd/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">https://www.entrepreneur.com/article/222438</a></li>
</ul>

Guide to Buying a Franchise: The Franchise Disclosure Document

1851 Franchise

SMB Franchise Advisors' CEO Steve Beagelman Provides Insight into what Would-Be Buyers and Franchisors Should Know about the Franchise Disclosure Document

This brand page has been paid for by TIPS FOR BUYING A FRANCHISE. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

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FRANCHISE INFORMATION

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Chapter 1: The Franchising Business Model

Chapter 2: Should You Be a Franchisee?

Chapter 3: Finding the Right Opportunity

Chapter 4: Selecting a Franchise

Chapter 5: The FDD

Chapter 6: Potential Earnings

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TIPS FOR BUYING A FRANCHISE

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5 CHAPTERS

TIPS FOR BUYING A FRANCHISE MOST READ STORIES

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ABOUT TIPS FOR BUYING A FRANCHISE

How to Read a Franchise Disclosure Document: Business Background (FDD Item 2)

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Understanding Item 3 of the Franchise Disclosure Document: Litigation History

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What Prospective Franchisees Need to Know About Item 4 of the FDD: Bankruptcy

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What Prospective Franchisees Need to Know about Item 17 of the FDD Before Investing in a Concept

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Guide to Buying a Franchise: The Franchise Disclosure Document

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