When you look to own a home care franchise, you will likely have numerous questions. You’ll want to know about the company, whether it’s reliable, has a great reputation, and supports its franchisees. When you get serious about buying into a home care franchise, you will be provided a Franchise Disclosure Document (FDD), and this should be provided at least two weeks before you sign any formal agreement.
What is a Franchise Disclosure Document?
This will most likely be written by attorneys who work for the franchise company and is mandated by the Federal Trade Commission (FTC). Some of these documents can run hundreds of pages long and the formal, legal terminology can certainly be intimidating in some cases.
Essentially, the beginning of the document should provide an overview of the company’s history, who owns it, who is in leadership positions within the company, and the various types of franchises offered.
You’ll also find detailed information about the business experience of the franchise executives. The more experience these individuals have, the more likely you will find success when you own a home care franchise. If you find a company that is relatively new to franchising, this could be a potential red flag. You’ll also want to look at the executives and their overall record of success in other business ventures. This can provide you a great deal of insight into whether or not this is a viable franchise to buy into.
Another section to focus on is litigation.
Almost every major company in the United States is going to have been involved in some type of litigation. This may involve infringement on trademarks, noncompliance, quality standards, and even those that may be deemed as frivolous. What you may want to focus on is determining whether there is any type of pending class action by franchisees or even consumers that could potentially bankrupt the company. If the company goes bankrupt shortly after you open your doors, that could be devastating.
Finally, look to the list of initial fees, other fees, and your overall initial investment. These should be detailed in this Franchise Disclosure Document. Even though you may have already been provided this information by those with whom you’ve contacted at the company, you will want to go over all of the details to ensure you’re completely clear on what to expect financially with regard to your investment when buying into this franchise opportunity.
Some people dismiss these documents, but you should take time to go over them and, when you do, you’ll feel more confident that you have made the right decision for your business future.
If you have questions about franchise opportunities with Golden Heart Senior Care Franchise, please contact our office at 1-800-601-2792, or check out our form at https://goldenheartfranchise.com/apply-now/.