the Franchise Disclosure Document (FDD)

A Franchise Disclosure Document (FDD) is a legal, detailed report that franchisors provide to prospective franchise owners. It outlines essential information about the franchise opportunity, including the business’s background, costs, fees, obligations, and legal history. The FDD helps potential franchisees understand what they’re investing in, the support they’ll receive, and any risks involved. It’s required by law to ensure transparency and informed decision-making before signing any franchise agreement. Think of it as a comprehensive guide that empowers you with vital details about the franchise opportunity.