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Franchise Disclosure Documents

A Franchise Disclosure Document (FDD) is a legal document that franchisors provide to potential franchisees before they invest in a franchise. It contains essential information about the franchise, including the business model, costs, and obligations, as well as details about the franchisor's background and performance history. The FDD is designed to help prospective franchisees make informed decisions by outlining risks, fees, and support provided. By reviewing it, potential buyers can better understand what to expect and assess whether the franchise opportunity aligns with their goals and financial situation.

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    Franchise disclosure documents (FDDs) are legal documents that provide important information about a franchise opportunity. They are designed to help potential franchisees make informed decisions before investing. An FDD includes details about the franchise's history, financial performance, fees, obligations, and the rights of both the franchisor and franchisee. By reviewing the FDD, prospective franchisees can understand what to expect from the business relationship and assess the risks and benefits associated with the franchise. In many places, franchisors are required by law to provide this document before any agreements are signed.