QUESTION

If I ask a franchisor for an FDD, does he have to give it to me?

Asked on Nov 06th, 2012 on Franchise Law - North Carolina
More details to this question:
I am looking at a particular business, but previous experience with the CEO tells me he won't give up an FDD until I've committed to buying a franchise. I'd like to research the FDD over a longer period of time. If I ask him to send me an FDD, does he have to send it to me?
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1 ANSWER

A franchisor must deliver to a prospective franchisee its current Franchise Disclosure Document at least 14 days before the franchisee signs any agreement with the franchisor or pays the franchisor any money.  Most franchisors have a pre-sale process that you must go through before most franchisor delivers the FDD to you.  Once you get the FDD, the 14-day period is only a minimum period of time.  You will want to review it, retain a franchise attorney to review it and negotiate changes, retain an accountant, prepare a business plan, line up your financing if necessary,  and perform your due diligence including visiting as many operating franchised businesses as you can.  This can be lengthy process but the franchisor should be assisting you with it.  
Answered on Nov 19th, 2012 at 9:44 AM

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