Reviewing the Franchise Disclosure Document | Internicola Law Firm

Reviewing the Franchise Disclosure Document

If you’re buying a franchise reviewing the FDD is a critical step in the due diligence process. The FDD is a legal disclosure document that a franchisor must provide to you not less than 14 days before you sign a franchise agreement or pay any money to the franchisor.  Required by federal law, the FDD contains 23 disclosure sections (each section is called an “item”) that contains detailed information about the franchisor, the franchise system and the franchise opportunity that you may be buying into. In addition to the franchise investment disclosures contained in the FDD, the FDD also includes a copy of the franchise agreement and other legal documents that you will be required to sign when you become a franchisee.

FDD Review

Before investing in a franchise or paying any money to a franchisor, you should review the FDD with an experienced FDD review lawyer. Below we outline the 23 disclosure sections / items contained in a FDD and we provide a breakdown of what you should expect to find in each section.

Every FDD must include information about the following 23 disclosure items:

Keep in mind that the accuracy of the  information reported by a franchisor in its FDD is not verified by any government agency. So, while reviewing the FDD is a critical step in buying a franchise, it’s not the only step.

ARE YOU BUYING A FRANCHISE? We can help you review the FDD, negotiate your franchise agreement, and protect your franchise investment. Call us at (800) 976-4904 or fill out our contact form. Learn more about our fixed fee representation for FDD reviews.

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With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your brand. Click on the button below or call us at (800) 976-4904.

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