Franchise Disclosure Statement doesn't disclose financial information and franchisee list, is this normal?
Hi, I'm looking to buy a franchise which is just getting started less than two years ago.
I received the FDD a couple days ago. When I finally got me ass sit down and read it, I found it's missing some important information.
In the FDD it says:
Attached to and forming part of this disclosure document are the following Schedules:
Schedule A – Standard Franchise Agreement (the “SFA”);
Schedule B – Financial Disclosure;
Schedule C – Franchisee List
The last page of the FDD (Receipt of Disclosure) also needs me to sign and confirm that I receive all the FDD and along with those Schedules.
but I perused the FDD and found no Schedule B,C,D,E. Since I'm a totally n00b and I think the information seems important to me, I asked for them from the franchisor and got a response saying those information will be sent out to me once the construction starts, meaning way after I pay the franchise fee and location selection process and all other stuff.
Is it normal to not having those info in the FDD? Or you think this is a really big red flag?
Thanks
I received the FDD a couple days ago. When I finally got me ass sit down and read it, I found it's missing some important information.
In the FDD it says:
Attached to and forming part of this disclosure document are the following Schedules:
Schedule A – Standard Franchise Agreement (the “SFA”);
Schedule B – Financial Disclosure;
Schedule C – Franchisee List
The last page of the FDD (Receipt of Disclosure) also needs me to sign and confirm that I receive all the FDD and along with those Schedules.
but I perused the FDD and found no Schedule B,C,D,E. Since I'm a totally n00b and I think the information seems important to me, I asked for them from the franchisor and got a response saying those information will be sent out to me once the construction starts, meaning way after I pay the franchise fee and location selection process and all other stuff.
Is it normal to not having those info in the FDD? Or you think this is a really big red flag?
Thanks