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Franchise Disclosure Document

A Franchise Disclosure Document (FDD) is a legal document that provides important information about a franchise opportunity. It includes details about the franchise's history, fees, financial performance, and the responsibilities of both the franchisor and franchisee. The FDD is meant to help potential franchisees make informed decisions before investing. In the U.S., franchisors are required to present the FDD to prospective franchisees at least 14 days before any agreements are signed, ensuring transparency and allowing time for careful consideration.

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    A Franchise Disclosure Document (FDD) is a legal document that provides essential information about a franchise opportunity. It must be given to potential franchisees before they invest. The FDD outlines details about the franchise system, the franchisor, fees, obligations, and financial performance, helping prospective franchisees make informed decisions. It typically includes 23 sections, covering everything from the franchise's history to legal obligations and potential risks. The FDD aims to promote transparency and protect potential franchisees by ensuring they have a comprehensive understanding of what they are entering into.