FDD (Franchise Disclosure Document)

A Franchise Disclosure Document (FDD) is a detailed legal document that franchisors provide to prospective franchisees. It outlines essential information about the franchise system, including the company's background, fees, obligations, financial performance, legal history, and risks involved. The purpose of the FDD is to ensure transparency, helping potential franchisees make informed decisions before investing. It's a regulatory requirement in many countries, designed to protect investors and promote fair business practices by providing a comprehensive overview of what’s entailed in owning and operating the franchise.