Before you invest your savings in a franchise, an attorney should review your FDD — every item, every exhibit, every earnings claim. Chase D. Lambert helps prospective franchisees understand exactly what they're signing up for.
The Franchise Disclosure Document is one of the most important — and most misunderstood — documents in business. Franchisors are required by federal law to provide prospective franchisees with an FDD before any money changes hands, but nothing requires them to explain what it actually means for you.
An FDD can run 200–500 pages. It contains critical information about litigation history, franchisee turnover rates, financial performance, fees, and the obligations you'll be locked into for the life of the agreement. Most people sign without a lawyer. Many regret it.
Scrutinizing what financial performance representations the franchisor makes — and what they're carefully not telling you.
Reviewing the franchisor's litigation and arbitration history for patterns of disputes with franchisees.
Analyzing how many franchisees have left the system — and why. High turnover is a red flag most buyers overlook.
Identifying all required fees, royalties, technology charges, and other ongoing financial obligations beyond the initial investment.
Understanding what rights you have — and don't have — when it comes to renewing or selling your franchise.
Evaluating how well (or poorly) your territory is defined and protected against franchisor encroachment.
Years of franchise law experience means Chase Lambert knows where franchisors hide unfavorable terms and what language should raise concern. Common red flags include vague territorial definitions, broad unilateral amendment rights, mandatory arbitration in distant venues, unusually high franchisee turnover, and earnings claims that don't hold up under scrutiny.
"The FDD is designed to disclose — but franchisors aren't required to explain. That's what we do."
— Chase D. LambertFederal law requires franchisors to give you 14 days to review the FDD before you sign or pay anything. Use that time wisely. Getting an attorney review before you're emotionally committed to a brand is the best time — you'll ask better questions and make a clearer-headed decision.
Chase Lambert provides timely FDD reviews designed to fit within the disclosure window, with a clear written summary of findings and recommended negotiation points.
Don't sign until you understand what you're agreeing to. Get a thorough FDD review from an experienced franchise attorney — starting with a free consultation.