franchise disclosure documents (FDD)

A Franchise Disclosure Document (FDD) is an important legal document that franchisors provide to prospective franchisees before they commit to a franchise. It outlines key information about the franchise system, including the business background, costs, obligations, legal issues, and the franchise’s financial performance. The purpose of the FDD is to help potential franchisees make an informed decision by providing transparency about the risks and responsibilities involved. It’s a required document in many countries to ensure that franchisees understand what they’re signing up for and can evaluate whether the franchise opportunity aligns with their goals.