Hey everyone, I’m currently looking into opening a franchise of a newish chicken joint around the Midwest. They just started allowing franchises last year and have 3 so far, the financials look solid from the stores I’ve seen but when I brought up that item 20 of the FDD didn’t have any of the contact info they stated that isn’t provided until the FDD is signed as they have to protect the privacy of their current franchisees.
The issue is the FTC says it’s required yet it’s not listed in their FDD. Am I crazy or does this seem like a really big red flag? They did state they would set up a conference call if I’d like to speak with them but the whole point is to do it without them.
It’s one thing I’ve learned. Do not go into a franchise. You’re nothing but a glorified manager making pennies on a dollar. If anything copy their model, save yourself a lot of grief, keep all of the profits vice giving it to Franchisor.
FDD is just a disclosure document. They don’t necessarily need to give you contacts of other owners, though. Referrals from other franchisees would be key for your decision making process I would think.