A. Firm Information
Franco Financial Advisors, Inc. (“FFA” or the “Advisor”) is a registered investment advisor with the U.S.
Securities and Exchange Commission (“SEC”), which is organized as a Corporation under the laws of New York.
FFA was founded in 2005 as a wholly-owned subsidiary of Franco Financial Group, Inc. FFA is operated by
Edmond D. Franco (President), This Disclosure Brochure provides information regarding the qualifications,
business practices, and the advisory services provided by FFA.
B. Advisory Services Offered
FFA offers investment advisory services to individuals, high net worth individuals, trusts, estates, and businesses
(each referred to as a “Client”).
The Advisor serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary,
the Advisor upholds a duty of loyalty, fairness and good faith towards each Client and seeks to mitigate potential
conflicts of interest. FFA’s fiduciary commitment is further described in the Advisor’s Code of Ethics. For more
information regarding the Code of Ethics, please see Item 11 – Code of Ethics, Participation or Interest in Client
Transactions and Personal Trading.
Investment Management Services
FFA provides customized investment advisory solutions for its Clients. This is achieved through continuous
personal Client contact and interaction while providing discretionary investment management and consulting
services. FFA works with each Client to identify their investment goals and objectives as well as risk tolerance
and understand their financial situation in order to create a portfolio strategy. FFA develops a personal
investment policy for each Client and then develops and manages their portfolio based on that policy. FFA will
manage accounts either on a discretionary or non-discretionary basis based on the needs of each Client.
FFA will create a portfolio consisting of one or all of the following types of securities: individual equities, bonds,
exchange-traded funds (“ETFs”), commercial paper, warrants, certificates of deposit, options, other investment
products, no-load and load-waived mutual funds as well as public and private hedge funds. FFA will allocate the
client's assets among various investments taking into consideration the overall management style selected by
the Client. FFA may utilize other types of securities and investments as appropriate to meet the goals of a
particular Client.
FFA’s investment approach is primarily long-term focused, but the Advisor may buy, sell or re-allocate positions
that have been held for less than one year to meet the objectives of the Client or due to market conditions. FFA
will construct, implement and monitor the portfolio to ensure it meets the goals, objectives, circumstances, and
risk tolerance agreed to by the Client. Each Client will have the opportunity to place reasonable restrictions on
the types of investments to be held in their respective portfolios, subject to the acceptance by the Advisor.
FFA evaluates and selects ETFs and mutual funds for inclusion in Client portfolios only after applying their
internal due diligence process. FFA may recommend, on occasion, redistributing investment allocations to
diversify the portfolio. FFA may recommend specific positions to increase sector or asset class weightings. The
Advisor may recommend employing cash positions as a possible hedge against market movement. FFA may
recommend selling positions for reasons that include, but are not limited to, harvesting capital gains or losses,
business or sector risk exposure to a specific security or class of securities, overvaluation or overweighting of the
position[s] in the portfolio, change in Client risk tolerance, generating cash to meet Client needs, or any risk
deemed unacceptable for the Client’s risk tolerance.
All Client assets will be managed within their designated account[s] at the Custodian, pursuant to the terms of the
Client investment advisory agreement. For additional information, please see Item 12 – Brokerage Practices.
Retirement Accounts – When the Advisor provides investment advice to Clients regarding ERISA retirement
accounts or individual retirement accounts (“IRAs”), the Advisor is a fiduciary within the meaning of Title I of the
Employee Retirement Income Security Act (“ERISA”) and/or the Internal Revenue Code (“IRC”), as applicable,
which are laws governing retirement accounts. When deemed to be in the Client’s best interest, the Advisor will
Page 5
provide investment advice to a Client regarding a distribution from an ERISA retirement account or to roll over
the assets to an IRA, or recommend a similar transaction including rollovers from one ERISA sponsored Plan to
another, one IRA to another IRA, or from one type of account to another account (e.g. commission-based
account to fee-based account). Such a recommendation creates a conflict of interest if the Advisor will earn a
new (or increase its current) advisory fee as a result of the transaction. No client is under any obligation to roll
over
a retirement account to an account managed by the Advisor.
FFA does not receive any compensation from these unaffiliated money managers or the Program
Sponsor, other than FFA’s Investment advisory fee, as described in Item 5 below.
The Client, prior to entering into an agreement with a Program Sponsor, will be provided with the Program
Sponsor's Form ADV Part 2A (or a brochure that makes the appropriate disclosures). In addition, FFA and its
Client will agree in writing that the selected Program Sponsor will manage the Client's account[s] on a
discretionary basis.
Financial Consulting Services
FFA will typically provide a variety of financial advisory services to individuals, families and businesses in
situations which require more value-added solutions to achieve strategic objectives. Services are provided either
as a component of investment management services or pursuant to a written agreement. In particular, FFA
provides strategic planning and financial solutions to solve complex, inter-disciplinary Client problems tailored to
their goals, objectives and specific circumstances. Such services are typically most appropriate for high net worth
clients who are entrepreneurs running private businesses and families with estate, succession and/or complex
relationships with corporate affiliates. In its consulting business, FFA applies investment banking and corporate
finance concepts and analyses to help Client’s solve problems and realize financial and strategic objectives.
Financial consulting services will often include the following areas of need:
• Strategic planning
• Liability and risk management
• Aggregate asset allocation including real estate and other illiquid assets
• Creation of a personal balance sheet, income statement and cash flow
• Budgeting
• Records management
• Estate planning issues
• Disability and retirement income analysis
• Analysis of individual or portfolio investments, allocation, performance and investment alternatives
• Evaluation of investment managers and professionals
Generally, FFA’s consulting services may involve preparing a financial plan or rendering a financial consultation
for clients based on the Client’s financial goals and objectives. A financial plan developed for or financial
consultation rendered to the Client will usually include general recommendations for a course of activity or
specific actions to be taken by the Client. FFA may also refer Clients to an accountant, attorney or other
specialist, as appropriate for their unique situation. For certain financial planning engagements, the Advisor will
provide a written summary of Client’s financial situation, observations, and recommendations. For consulting or
ad-hoc engagements, the Advisor may not provide a written summary. Clients are not obligated to implement any
recommendations made by the Advisor or maintain an ongoing relationship with the Advisor.
Financial planning and consulting recommendations pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor has an incentive to recommend that Clients engage the Advisor
for investment management services or to increase the level of investment assets with the Advisor, as it would
increase the amount of advisory fees paid to the Advisor. Clients are not obligated to implement any
recommendations made by the Advisor or maintain an ongoing relationship with the Advisor. If the Client elects
to act on any of the recommendations made by the Advisor, the Client is under no obligation to implement the
transaction through the Advisor.
Page 6
C. Client Account Management
Prior to engaging FFA to provide investment advisory services, each Client is required to enter into one or more
agreements with the Advisor that define the terms, conditions, authority and responsibilities of the Advisor and
the Client. These services may include:
• Establishing an Investment Strategy – FFA, in connection with the Client, will develop a strategy for the
Client that is targeted to achieve the Client’s objectives.
• Asset Allocation – FFA will develop a strategic asset allocation that is targeted to meet the investment
objectives, time horizon, financial situation and tolerance for risk for each Client.
• Portfolio Construction – FFA will develop a portfolio for the Client that is intended to meet the stated
goals and objectives of the Client.
• Investment Management and Supervision – FFA will provide investment management and ongoing
oversight of the Client’s investment portfolio.
D. Wrap Fee Programs
FFA does not manage or place Client assets into a wrap fee program. Investment management services are
provided directly by FFA.
E. Assets Under Management
As of December 31, 2022, FFA manages $45,686,484 in Client assets, all of which are managed on a
discretionary basis. Clients may request more current information at any time by contacting the Advisor.