FDD regulations

FDD regulations, or Franchise Disclosure Document regulations, are legal requirements in the U.S. that franchise companies must follow. Before selling a franchise, franchisors must provide potential franchisees with a detailed document that outlines key information. This includes the franchise's history, fees, obligations, and financial performance. The purpose is to ensure transparency and help potential franchisees make informed decisions. By mandating this disclosure, the regulations aim to protect both the franchisees and the overall integrity of the franchise industry.