The Franchise Disclosure Document Hack My Dad Taught Me

hello I'm the franchise King Joel lababa today we're going to talk about the franchise FDD the franchise disclosure document and why the numbers aren't really important well they're important but to a point uh first I want to tell you how my dad my late father Jerry laava explained the FDD to me he told me in the plainest language possible uh he was pretty straightforward like I am he told me that Joel the FTD is not the business I want to say that again the franchise Disclosure document is not the business it's a bunch of numbers written in ink on paper and it's written by brilliant franchise attorneys who know way more about fdds and franchise contracts and franchise agreements and operations and stuff like that way more than you and I the real business is what the franchisees you call and visit tells you it is and that's why the numbers really aren't important to a point I mean it's great to look at the FDD and highlight stuff and look at the numbers averages uh but you know if the average let's say that the that you're looking at a um a Massage Envy franchise document an FDD uh versus um uh maybe a competitor a hand in stone massage uh frame franchise and let's say that the handen stone franchises on average uh have a revenue of $1. 5 million and a year and uh their competitor has $1. 7 million per year in revenue does that mean you should automatically go to the one that has higher Revenue no so don't fall on the Trap of comparing fdds and comparing the numbers on the fdds if you're looking at two different franchises of the same in the same sector don't do that instead call the existing franchisees at least 10 or 15 of them of each franchise you're looking at and ask them how realistic th those numbers are and ask them what the business really consists of I'm telling you that is the way to find out the truth about the FDD it's not the numbers that matter it's what the business is what the business does and what the existing franchises are actually making because I guarantee if you think you're going to make 1,500,000 well not make but if you think you're going to bring in $1,500,000 um exactly uh because the FDD said that's the average um you're going to be wrong you might bring in $1. 4 million or $1. 8 million which would even be better in Revenue but you're not going to bring in the exact average that's why the numbers really don't matter as much as you think to get to the heart of the matter about the franchise you want to buy about the revenue about the profit and about what the business really is get off the FDD put it down ask the franchisees who are actually working in and on the business I hope that helps I'm the franchise King Joel Ababa thanks for watching this franchise video