“FDD” stands for “franchise disclosure document” and represents the legally mandated disclosure document that a franchisor must provide to its prospective franchisees. As a “prospective franchisee”, the franchisor must deliver to you the franchisors then current FDD no less than 14 calendar days prior to the earlier of (a) your payment of any franchise related fees or (b) your execution of any franchise related agreement. The franchisors FDD delivery obligation applies to the sale of a new franchise opportunity but does not apply to a third party transfer or sale of an existing franchised business.
An FDD must be accurate. An inaccurate FDD can result in serious repercussions and unnecessary lawsuits that may arise from franchisees. To avoid unnecessary mistakes in a franchise disclosure document you may consider hiring a Franchise Lawyer to compose your FDD along with any other necessary documents.
For information about our Franchise Compliance Programs and Franchise Start-Up Programscontact our franchise law firm at 1-800-976-4904.
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you
and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
