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        Franchise Reviews’s Franchise Review offers a detailed analysis of all 23 Franchise Disclosure Document (FDD) points to ensure their compliance with Federal standards and certify them as legitimate. Find out more about how the franchise review process and FDDs work.

        What is Franchise Review and how it works?

        • What is Franchise Review?

          We review FDD’s and provide a “FranchiseReview” certification to assure the legitimacy of the franchise. We review all 23 components of the FDD to assure compliance with FDD standards.

        • Who is Franchise Review?

          Our FranchiseReview certification process is carried out by experienced franchising professionals who thoroughly examine each franchise disclosure document. After confirmation, only legitimate franchises are certified with an FranchiseReview certification.

        • Where is Franchise Review Located?

          The certification seal can be found on a franchisor’s web page. Users can utilize an FranchiseReview certification while researching business or franchise opportunities, to assure their legitimacy.

        What are the Franchise Review 23 check-point items?

        1. The franchisor and any parents, predecessors, and affiliates: This portion of the FDD establishes the background and history of the franchisor.

        2. Business Experience: The franchise’s main figureheads, including directors, trustees, partners, etc.

        3. Litigation: Pending or completed litigation.

        4. Bankruptcy: Financial information regarding the franchise.

        5. Initial Fees: Range of initial fees associated with the purchase of the franchise.

        6. Other Fees: Other not refundable fees involved in purchasing the franchise.

        7. Estimated Initial Investment: This table outlines the expenses a potential franchisee can expect to pay.

        8. Restrictions on Sources of Products and Services: This section outlines what the franchisor may and may not sell.

        9. Franchisee’s Obligations: A list of the franchisee’s obligations and tasks.

        10. Financing: Franchisor discloses any financing they may offer to the franchisee.

        11. Franchisor’s Assistance, Advertising, Computer Systems, and Training: Outline of the assistance and training the franchisor offers to the new franchisee.

        12. Territory: The protected territory the franchisee will receive for their new franchise location.

        13. Trademarks: Purchasing a franchise grants the franchisee the right to use the company brand and trademarks.

        14. Patents, Copyrights, and Proprietary Information: Any pending or current patents, copyrights, or other relevant proprietary information.

        15. Obligations to Participate in the Actual Operations of the Franchise Business: Specific outline of the responsibilities of the franchisee.

        15. Restrictions on what the Franchisee May Sell: A breakdown on what the franchisee may or may not sell.

        17. Exit Strategies and Dispute Resolution Procedures: Restrictions related to transfer or termination of the Franchise Agreement.

        18. Public Figures: Any public figures that may be involved with the franchise.

        19. Financial Performance Representations: Estimated financial performance representation

        20. Outlets and Franchisee Information: Table of all the company’s franchised locations from the previous three years.

        21. Financial Statements: Audited financial statements for the prospective franchisee’s review.

        22. Contracts: All agreements and contracts that the potential franchisee is expected to sign.

        23. Receipts: Receipts in this section verify that the prospective franchisee received the FDD.

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