The Franchise Disclosure Document (FDD) is the most important document in the transaction purchase and sale of a franchise. 14 days before signing an agreement with a franchise.
The FDD has detailed and critical information that the franchisee must know before investing in a franchise. This with the purpose of protecting franchisees from scammers.
There are two major reasons why FDD exists:
1. To protect the person as a candidate and
2. To protect the franchisor from misunderstandings, claims or false allegations.
There are 23 areas of information that must be disclosed in the FDD
• The franchisor and parents, predecessors and affiliates, predecessors.
• Business experience
• The Setup Fees
• Estimated Initial Investment
• Restrictions on the sources of products and services
• Obligations of the Franchisee
• Franchisor assistance, advertising, systems, information and training
• Copyright patents and potential information
• Obligation to participate in the actual operation of the Franchise business
• Financial Performance Restrictions
• Restrictions on what the franchisee can sell
• Renewal, termination, transfer, and resolution of disputes
• Public figures
• Financial performance representations
• Financial statements
• Information of points of sale and franchises
If you are looking for consulting for an FDD Preparation, do not hesitate to reach us. Our expert and
highly trained lawyers will attend to all your needs. For more information contact us, e-mail:
email@example.com – Tel: (561) 693-3221