Question

In section​ ____ of the Franchise Disclosure​ Document, there is a list of all the franchisees who have dropped out of the system in the past 3 years along with their contact information.

Answer 1

The list of franchisees who have dropped out in the past three years is located in Item 20 of the Franchise Disclosure Document, which includes their contact information and offers insights into the franchise's turnover rate.

Step-by-step explanation:

In the Franchise Disclosure Document (FDD), the information about franchisees who have left the system in the previous three years can be found in Item 20. This section provides important insights into the turnover rate within the franchise, which is valuable for prospective franchisees when assessing the stability and potential risks of investing in the franchise. Item 20 typically includes a list of franchisees who have terminated their agreements, not renewed, or otherwise left the system, along with their last known contact information. This transparency allows potential franchisees to connect with former members of the franchising system to discuss their experiences directly.