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What information is contained in the franchise disclosure document?
The question suggests that it is standard practice in the UK to provide a franchise disclosure document. Sadly this is not the case, because unlike the US and an increasing number of other jurisdictions, there is no legal obligation on franchisors to provide any relevant information to prospective franchisees about their franchise business. As a result, many franchisors do not do this. They may have a glossy brochure, but this falls far short of the very detailed disclosure documents that you see in the US. Increasingly, however, franchisors in the UK are providing detailed disclosure information to prospective franchisees, and if the franchisor that you have approached does this you should consider it to be a definite plus. At the end of the day, franchise agreements will contain provisions to the effect that the franchisor is not legally responsible for representations/information provided to prospective franchisees prior to them entering into a franchise agreement. So even if a disclosure document is forwarded to you, you should not necessarily rely on it and should carry out your own investigations.
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Expense Reduction Analysts...
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60% bank funding, subject to status
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