Virginia Flat Fee FDD Review
Purchasing a franchised business provides entrepreneurs with access to a proven business model they can replicate with the help of a franchisor delivering comprehensive training and support. However, not all franchisors or franchise opportunities are created equal. Understanding the legal and business terms of the franchise disclosure document “FDD” is an essential part of conducting due diligence. We offer comprehensive FDD review for a reasonable flat fee of $1,850. We also offer expedited service in 3-5 business days for no additional fee.
Purchasing a franchised business
A franchised business can only be sold through disclosure of a franchise disclosure document (the “FDD”). In Virginia, the FDD must comply with federal franchise law and the franchisor must be registered with the Virginia State Corporation Commission before offering any franchise in the state. Reviewing an FDD can be overwhelming even for seasoned entrepreneurs, but understanding the FDD is a worthwhile investment that can pay dividends. The FDD is an incredible tool designed to help buyers make informed decisions before purchasing a business. The FDD is unique for franchising.
Our Virginia licensed attorneys are business minded and they specialize in franchise law. They have experience working with both franchisors and franchisees, so they understand the business of franchising. During our FDD review process, our attorneys help entrepreneurs understand the purpose of the FDD, appreciate its content, and develop a plan to executed for success.
What Makes a Franchise a Franchise?
Franchising occurs when an oral or written deal satisfies these three elements:
1: Right to Operate
The buyer will obtain the right to operate a business that is identified or associated with the seller’s trademark, or to offer, sell, or distribute goods, services, or commodities that are identified or associated with the franchisor’s trademark; and
2: some Degree of Control
The seller will exert or has authority to exert a significant degree of control over the buyer’s method of operation, or provide significant assistance in the buyer’s method of operation; and
3: Payment of Fees
As a condition of obtaining or commencing operation of the business, the buyer makes a required payment or commits to make a required payment to the seller or its affiliate. (There is an exemption for certain fees less than $615 before and during first 6 months; however, some states have lower threshold amounts or measure the fee over a different period of time).
What is An FDD?
The FDD is the legal document used by franchisors to offer and sale franchises in the United States. Each FDD contains specifically disclosures about the franchisor and the nature of the franchise relationship. These disclosures are separated into 23 separate areas referred to as Items in the disclosure document. The franchise agreement, along with any other contracts that govern the franchise relationship are included as part of the FDD. When we use the phrase FDD review, that includes having an attorney review each of these contracts.
FDD Legal Review For a Reasonable Fixed Fee
Additional Legal Support
Our attorneys can help at every stage of your entrepreneurial journey. From launch to maturity, Waldrop & Colvin is the law department for your business.
Why Choose Our Law Firm?
World Class Legal
You shouldn't need to speak latin or have a law degree to read a contract. We draft disclosures and contracts to protect your interests without the legalese.
Accessible
We are accessible by text, call, e-mail, video-conference, or in person in Hampton Roads, Virginia. We make ourselves available for next-day appointments.
Responsive
We respond to our clients within hours, not days. We value open and honest communication. You can count on us to pickup when you call.
Complete Solution
Decades of experience have lead to vast legal knowledge across various practice areas. We provide knowledge to enable clients to best accomplish any task.
