We are still dissecting the Franchise Disclosure Document (FDD). These 23 sections/items of legal information are critical to making a decision about whether or not to acquire a franchise. We've been through the first three sections/items in previous posts so check them out.
If you want to learn more about what the FDD is, and why it was created, go back to the first episode which kind of gives you the history and what it's really about. Now we are covering bankruptcy, and what specifically we're talking about here is has the franchisor been involved in some type of bankruptcy.
This one's a pretty obvious one. If the organization were to have been involved in a bankruptcy prior that would be a red flag.
We've been in business before, multiple times, and we know how difficult it can be, and sometimes bankruptcy may just be the most logical solution to kind of move on to the next chapter of their life.
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