Franchise Disclosure Document (FDD) Compliance

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to potential franchisees before a franchise agreement is signed. It contains important information about the franchise, including financial performance, fees, obligations, and the franchisor's background. Compliance with FDD regulations ensures transparency, helping franchisees make informed decisions. Franchisors must regularly update the FDD to reflect changes in the business. Adhering to these rules protects both parties and promotes fair practices within the franchising industry.