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Questions and Answers
What is the purpose of the Franchise Disclosure Document (FDD)?
What is the purpose of the Franchise Disclosure Document (FDD)?
- To give franchisees the information they need to protect themselves and make good investments (correct)
- To evaluate potential franchisees
- To replace the Uniform Franchise Offering Circular (UFOC)
- To require franchisors to disclose information on 23 important topics
What should potential franchisees do before making a decision to buy a franchise?
What should potential franchisees do before making a decision to buy a franchise?
- Consider franchise options
- Evaluate themselves
- Research the franchisor's FDD
- All of the above (correct)
How many important topics are franchisors required to disclose in the FDD?
How many important topics are franchisors required to disclose in the FDD?
- 30
- 23 (correct)
- 10
- 15
What is the objective of the FDD?
What is the objective of the FDD?
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What should potential franchisees do after obtaining the franchisor's FDD?
What should potential franchisees do after obtaining the franchisor's FDD?
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