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What Information Does a Franchise Disclosure Document Contain When Buying a Franchise?

A Brief Overview of an FDD

A franchise disclosure document, also referred to as an FDD, contains 23 topics which are referred to as items and is a few hundred pages in length. The franchise disclosure document provides information about the franchise company, it's operations and the franchisor.

The following items are contained in a franchise disclosure document:

  • Item 1: The Franchisor and Any Parents, Predecessors or Affiliates
  • Item 2: Identity and Business Experience of Any Key Persons
  • Item 3: Litigation History
  • Item 4: Bankruptcy
  • Item 5: Initial Franchise Fee
  • Item 6: Other Fees and Expenses
  • Item 7: Franchisee's Estimated Initial Investment
  • Item 8: Restrictions on Sources of Products and Services
  • Item 9: Obligations of the Franchisee
  • Item 10: Financial Arrangements
  • Item 11: Obligations of the Franchisor
  • Item 12: Territory
  • Item 13: Trademarks
  • Item 14: Patents, Copyrights and Proprietary Information
  • Item 15: Obligation of the Franchisee to Participate in the Actual Operation of the Franchise Business
  • Item 16: Restrictions on Goods and Services Offered by the Franchisee
  • Item 17: Renewal, Termination, Repurchase, Modification and/or Transfer of the Franchise Agreement, and Dispute Resolution
  • Item 18: Public Figures
  • Item 19: Financial Performance Representation
  • Item 20: List of Franchise Outlets
  • Item 21: Financial Statements
  • Item 22: Contracts
  • Item 23: Acknowledgment of Receipt

Learn More

To learn more about franchise documents and the process of buying a franchise visit Franchisee University. Franchisee University is a resource offered by The Internicola Law Firm, P.C.

To speak with someone in our office about our programs for buying a franchise which includes the review of the franchise disclosure document call 1-800-976-4904 or contact us online.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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