Decoding the Franchise Disclosure Document: What You Should Know
Starting your journey as a franchise owner is an exciting and rewarding venture, but it’s also a decision that requires careful evaluation. One of the most central elements you’ll encounter during the franchise discovery process is the Franchise Disclosure Document (FDD). While the name might sound intimidating, this document is designed to empower you with transparency and insight before you invest.
At Always Best Care, we believe in full transparency with potential franchise owners. We want our franchise partners to make informed decisions with confidence, and understanding the FDD is an essential first step in that process.
What Is the Franchise Disclosure Document?
The Franchise Disclosure Document is a legal document that franchisors are required by the Federal Trade Commission (FTC) to provide to prospective franchisees at least 14 days before signing a franchise agreement or exchanging any money. Its purpose is to provide detailed information about the franchisor, the business opportunity, and the obligations of both parties.
The FDD is standardized in format and must contain 23 distinct items, each addressing a specific aspect of the franchise relationship.
Key Sections to Pay Attention To
While every section of the FDD is important, there are a few areas that are particularly relevant when evaluating a senior care franchise like Always Best Care:
Item 1 – The Franchisor and Any Parents, Predecessors, and Affiliates
This section gives an overview of the franchisor’s history, how long they’ve been in business, and the structure of the organization.
Item 3 – Litigation
Learn if the franchisor has been involved in any recent or ongoing legal disputes. A clean litigation history can offer peace of mind about the franchisor’s business practices.
Item 5 – Initial Fees
Understand what you will be required to pay upfront, including the franchise fee and any training or onboarding costs.
Item 6 – Other Fees
This includes ongoing fees such as royalty payments, marketing fund contributions, and technology fees.
Item 7 – Estimated Initial Investment
One of the most critical sections, this provides a breakdown of the total investment needed to get your business up and running, including working capital.
Item 11 – Franchisor’s Assistance, Advertising, and Training
Learn what support you’ll receive before and after launch, including marketing, technology, and operational guidance. At Always Best Care, our comprehensive training and support programs are a cornerstone of our franchise model.
Item 19 – Financial Performance Representations
Not all franchisors provide financial performance data, but Always Best Care includes information to help you understand revenue potential. This item gives you a look at the historical performance of existing franchisees, giving you realistic insight into what to expect.
Item 20 – Outlets and Franchisee Information
See the number of existing units, where they’re located, and how many have opened or closed in recent years. This data speaks volumes about the brand’s stability and growth.
Why the FDD Matters
The FDD is more than just a regulatory requirement—it’s a vital decision-making tool. Reading and understanding the FDD helps you:
- Clarify your financial obligations
- Set realistic expectations
- Understand the brand’s track record and reputation
- Know what resources and support you’ll receive
- Avoid surprises down the road
Before signing any agreement, you should review the FDD carefully, ideally with the help of a franchise attorney who can interpret the legal language and flag any concerns.
How Always Best Care Stands Out
In the senior care space, Always Best Care is a trusted and proven brand. Our FDD reflects not only our longevity and operational excellence but also our dedication to supporting franchisees every step of the way. From initial training to ongoing business development, we’re invested in your success. Our performance data, support services, and franchisee satisfaction are points of pride that we’re happy to share transparently in our FDD.
Interested in Becoming an Always Best Care Franchisee?
If you’re serious about entering the booming senior care market with the support of a reputable, experienced franchisor, Always Best Care is ready to help you begin your journey. Our team will walk you through the FDD, answer your questions, and ensure you feel confident and well-informed.
Contact Always Best Care today at (855) 470-2273 or visit our franchise website to request your Franchise Disclosure Document and schedule a discovery call. Let’s turn your entrepreneurial vision into a business with purpose.
