Item 21 of the Franchise Disclosure Document (FDD) is easy to overlook, and it holds the franchisor’s financial statements.
In this short video, we break down what Item 21 actually covers, how to read the franchisor’s audited financial statements, and which red flags to look for. It is a good watch whether you are a first-time buyer or already exploring franchise opportunities.
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What’s covered
What Item 21 of the FDD covers
How to read the franchisor’s audited financial statements
Which red flags to look for
Why audited financials matter
What will you learn from this video?
- What Item 21 of the FDD actually covers
- How to read the franchisor’s audited financial statements
- Which red flags to look for
- Why understanding Item 21 helps you make an informed decision
What are the key takeaways?
- Item 21 is easy to overlook and worth your time.
- The franchisor’s audited financial statements are a core part of it.
- Knowing the red flags ahead of time helps you ask better questions before you decide.
Who is this video for?
It is made for first-time buyers, but anyone comparing brands can use it as a checklist when they open an 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.
