What Information Must I Provide in a Franchise Disclosure Document?

When starting a franchise in New York, the Federal Trade Commission (FTC) requires that you provide specific information in a Franchise Disclosure Document (FDD). This information must be provided to potential franchisees so that they can make an educated decision as to whether or not to invest. According to the FTC, there are 4 areas of basic information which must be clearly detailed in the FDD.

In the FDD, the 4 key subjects should include information about the franchisor, the franchise system, the franchisee's business, and the franchise agreement. This will help to inform prospects about your franchise business.

Some of the required information in the FDD will include: 

• the franchisor's financial statements;
• the franchisor's bankruptcy and litigation history;
• advertising and training programs;
• how much of an initial investment the franchisee will have to make;
• restrictions on the sales of products and/or services;
• the required initial and ongoing fees;
• territorial rights and competition; and
• the franchisee's use of trademarks, copyrights, and other intellectual property. 

There are also specific guidelines regarding how the FDD should be written. For professional help with your FDD, you can contact an experienced New York franchise attorney. An attorney can assist you with the process of drawing up your Franchise Disclosure Document and help you to avoid costly mistakes often associated with preparing an FDD.

If you plan on starting a franchise in New York, you will be required to provide potential franchisees with a Franchise Disclosure Document, which you can read more about in our article library. 

How can a New York franchise attorney help?

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.