franchise disclosure document (fdd)

What Information is Included in an FDD?

The FDD is typically divided into 23 sections, known as "items," which cover various aspects of the franchise. These items include:

Item 1: The Franchisor and Any Parents, Predecessors, and Affiliates
Item 2: Business Experience
Item 3: Litigation History
Item 4: Bankruptcy
Item 5: Initial Fees
Item 6: Other Fees
Item 7: Estimated Initial Investment
Item 8: Restrictions on Sources of Products and Services
Item 9: Franchisee's Obligations
Item 10: Financing
Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training
Item 12: Territory
Item 13: Trademarks
Item 14: Patents, Copyrights, and Proprietary Information
Item 15: Obligation to Participate in the Actual Operation of the Franchise Business
Item 16: Restrictions on What the Franchisee May Sell
Item 17: Renewal, Termination, Transfer, and Dispute Resolution
Item 18: Public Figures
Item 19: Financial Performance Representations
Item 20: Outlets and Franchisee Information
Item 21: Financial Statements
Item 22: Contracts
Item 23: Receipts

Frequently asked queries:

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Why is the FDD Important?

What Information is Included in an FDD?

How is the FDD Regulated?

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