Are you exploring franchise ownership? Before you sign anything, make sure you understand what you are agreeing to. In this video, Lisa and a franchise expert go deep on Item 6 of the Franchise Disclosure Document (FDD).
Item 6 is the section that lays out ongoing fees and other charges, along with fine print worth reading closely. Knowing how to read it helps you see the full picture of a franchise before you commit.
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What’s covered
0:44 What fees are actually “hidden”?
2:01 Ongoing fees you will pay (royalties, ad fund and more)
3:08 Are these fees worth it? How to judge value
4:10 What a national ad fund is really for
What will you learn from this video?
- What Item 6 of the FDD covers
- Where ongoing fees show up in the document
- How to find lesser-known fees and fine print in Item 6
- Why to understand your commitments before you sign anything
What are the key takeaways?
- Item 6 is where a franchise’s ongoing fees, other charges and fine print are laid out.
- Read it before you sign, not after.
- A franchise expert and Lisa walk through it together, so you can follow along with your own FDD.
Who is this video for?
This one is for anyone comparing franchise brands who wants to look past the headline and understand the fees written into the FDD.
Good to know
This video is general education, not legal advice. For your own FDD, a franchise attorney can review it with you.
Not sure whether this applies to you?
That’s the kind of thing a 15 to 25 minute call sorts out quickly. Complimentary, with no obligation.
