June 16, 2025
Episode 9: Franchise Fees, FDD Secrets & Legal Landmines: Expert Insights from Attorney James Ullman
Franchise Law 101: What Every Future Franchisee Needs to Know About the FDD
Before you sign that franchise agreement, make sure you’re not signing away your success. In this episode, franchise attorney James Ullman breaks down the key parts of the FDD—and what too many entrepreneurs overlook.
Episode 9: Franchise Fees, FDD Secrets & Legal Landmines: Expert Insights from Attorney James Ullman
Episode Summary
In this insightful episode of The Franchise Business Radio Show, Pam and Sherri Currie interview franchise attorney James Ullman of Spencer Fane to decode the Franchise Disclosure Document (FDD)—a crucial, yet often misunderstood, component of every franchise investment. With over 30 years of experience representing both franchisors and franchisees, James provides a practical, clear-eyed view of key FDD items, including franchise fees, item 7 (initial investment), royalties, liquidated damages, and personal guarantors.
The episode not only highlights what to watch out for in your franchise agreement but also discusses smart negotiation strategies and the importance of aligning with a franchise attorney early in the process. James also offers real-world examples—including a cautionary tale about ignoring Item 20—that emphasize the importance of due diligence and planning ahead for your franchise exit strategy. A must-listen for first-time investors and seasoned entrepreneurs alike.
What You’ll Learn
- The true purpose and structure of the Franchise Disclosure Document (FDD)
- What to watch for in Item 7: Estimated Initial Investment
- How royalties and marketing fees are typically structured (and what’s negotiable)
- The purpose of Item 19 (Financial Performance Representation) and how to read between the lines
- What liquidated damages and personal guarantors really mean for franchisees
- Red flags to look for in franchise agreements
- How exit strategies work—and why you need one before you even start
- When and how a franchise attorney can help you avoid costly mistakes
About the Guest
James Ullman is a veteran franchise attorney with over three decades of legal expertise in franchising. Currently a partner at Spencer Fane, he’s worked with both franchisors and franchisees, from single-unit dreamers to multinational brands. Known for his clarity, practical advice, and collaborative spirit, James is passionate about educating entrepreneurs to make smarter, legally sound franchise decisions.
Episode Transcript
Expand to read the full conversation between Alesia Visconti and our host.
**Disclaimer
Information shared by Franchise Intellect, Pam Currie, and Shari Currie Skjoldager (“Franchise Sisters”) is for educational purposes only and should not be considered financial, legal, or investment advice. No guarantees of performance or earnings are made. All investments involve risk and require independent due diligence.
Ready to Join the Movement?
If you’re a woman ready to take control of your future, now is the time.
Franchising isn’t just about business—it’s about building your life, on your terms.
Stay Tuned For Our Latest Episodes
Franchise Business Radio is a platform to interview business professionals, to educate and provide insider franchise knowledge.
Start Listening Today!
Franchise Business Radio was created to feature the voices of industry experts and bring real-world franchise insights to those exploring business ownership. The show empowers aspiring entrepreneurs with the knowledge they need to choose the right franchise, avoid common pitfalls, and build a path toward financial freedom. Hosted by the Franchise Sisters and backed by their firm, Franchise Intellect, the show delivers straight talk and expert guidance on franchise selection. Before making a franchise investment, connect with the Franchise Sisters—Advanced Certified Franchise Consultants—and make sure you’re aligning with the right opportunity from the start.
Contact Us