FDD franchise disclosure document 0/0/0/0/0 page is worthless and misleading

Don’t bet your life savings on the FDD franchise disclosure document 0/0/0/0/0 page!

The following page is contained in a typical FDD franchise disclosure document / UFOC franchise document.

It is required by the FTC for Franchisors to present this page to potential franchisees. When you look through the UFOC franchise, FDD franchise disclosure document, and franchise license agreement, several pages will stand out. These pages will have rows and columns filled with 0/0/0/0/0. An example is below. Licensed Consulting Practice Status Summary FDD franchise disclosure document 0/0/0/0/0 page is worthless and misleading information  

For the period ending December 31, 2010, and years ending 2009,2008, 2007, 2006 Data is displayed corresponding to the years as 2010/09/08/07/06 State Transferred Cancelled Not Renewed Reacquired by Licensor Left the system Total Operating at year end AZ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ AL 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ AR 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ CA 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ CO 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ DE 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ FL 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ GA 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ MA 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ MN 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ MO 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ PA 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/0/0/0/ 8/4/2/1/ WA 1/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/1/0/0/ 0/1/0/0/ 0/1/0/0/ 3/1/1/0/ Total 1/0/0/0/ 0/0/0/0/ 0/0/0/0/ 0/1/0/0/ 0/1/0/0/ 0/1/0/0/ 75/49/25/12

This page in the uniform franchise offering circular UFOC and FDD franchise disclosure document is worthless information!

This worthless page enables a franchise scam!

This data is misleading with a franchisor that is practicing franchise churning!

Franchise churning organizations can present data on these pages by filling in as many 0/0/0/0 as possible to make them look good. Too many 0/0/0/0/0 would be suspicious. Because there is no perfect business, there should be some failures. So, there will be a few, very few rows & columns with a few 1’s and 2 are sprinkled in.

There is no way for you to accurately know if this FDD franchise page is correct.

The franchisor could have 100% failure of each franchisee per year. If the franchisor has 23 franchisees per state, and each one failed year after year, the data should look like 23/23/23/23/23.

However, the use of the FTC approve transfer rules along with FTC approved non-disclosures published in the FTC The Franchise Rule allows the churning franchise to present the data as 0/0/0/0/0.

You are betting your life saving on this completely misrepresented data in the FDD franchise disclosure document.  

Buy “The Franchise Fraud” by Robert Purvin, Jr. http://lesstewart.wordpress.com/2008/08/11/the-franchise-fraud-by-robert-purvin/

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