Franchise Disclosure

Franchise Disclosure refers to the legal requirement for franchisors to provide potential franchisees with comprehensive information about the franchise before they invest. This includes details about the business model, financial performance, fees, and obligations. The goal is to ensure that prospective franchisees can make informed decisions based on clear and accurate information. The disclosure document, often called the Franchise Disclosure Document (FDD), serves to protect both parties by promoting transparency and reducing misunderstandings in the franchising relationship.