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What Information Is Required In A Franchise Disclosure Document?

Under the Federal Franchise Rule, a Franchisor's Franchise Disclosure Document ("FDD") must include the following twenty-three disclosures / items:

  1. The Franchisor and any Parents, Predecessors and Affiliates;
  2. Business Experience;
  3. Litigation;
  4. Bankruptcy;
  5. Initial Fees;
  6. Other Fees;
  7. Estimated Initial Investment;
  8. Restrictions on Sources of Products and Services;
  9. Franchisee's Obligations;
  10. Financing;
  11. Franchisor's Assistance, Advertising, Computer Systems and Training;
  12. Territory;
  13. Trademarks;
  14. Patents, Copyrights and Proprietary Information;
  15. Obligation to Participate in the Actual Operation of the Franchise Business;
  16. Restrictions on what the Franchisee may Sell;
  17. Renewal, Termination, Transfer and Dispute Resolution;
  18. Public Figures
  19. Financial Performance Representations;
  20. Outlets and Franchisee Information;
  21. Financial Statements;
  22. Contracts;
  23. Receipts
Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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