The Franchise Lawyer’s Playbook: How to Spot Red Flags in an FDD Before You Sign

What should you actually look for in a Franchise Disclosure Document before you wire a franchise fee and sign a 10 year agreement? In this episode of How I Franchise This, Alex sits down with Adam Wasch, founding partner of The Franchise Firm, to break down how franchise attorneys help buyers reduce risk, negotiate smarter, and avoid the most common “I wish I knew this before I signed” mistakes. Adam walks through how he reviews an FDD like a home inspector, why he checks Item 20 first (and what it signals about negotiation leverage), the sections buyers consistently underweight (and overweight), and why “it has an FDD” does not automatically mean it is a proven system. They also dig into industries where legal review gets more complex due to extra regulation, how incentives in franchising can get misaligned, and what “responsible franchising” should actually look like. If you are buying your first franchise or evaluating emerging brands, this is a practical roadmap for doing diligence with your eyes wide open.