Franchise Disclosure Statements

A Franchise Disclosure Statement (FDS) is a detailed legal document that franchisors provide to potential franchisees before they commit to buying a franchise. It discloses important information about the franchise opportunity, including costs, risks, the company's background, financial performance, franchisee obligations, and legal history. The purpose of the FDS is to help prospective franchisees make informed decisions and understand what they’re signing up for, promoting transparency and reducing surprises. It’s typically required by law in many countries to ensure franchise buyers have comprehensive, accurate information before entering into an agreement.