What is a FDD (Franchise Disclose Document)?
The FDD is a legal document that is required by the FTC (Federal Trade Commission) and/or the particular State in which you want to open your center and is designed to protect you, the franchisee. It contains 23 categories of information that describes the franchise offering in great detail. It describes the franchisors and the franchisees responsibilities, investment information, financial condition of the franchisor and other valuable information. It contains information on the following areas: contracts, litigation, fees, restrictions, financing, franchisee/franchisor obligations, territory, trademarks, earnings claims, list of all outlets, financial statements, ongoing development and much more. No contracts or fees can be accepted by the franchisor for ten business days from the date you sign the receipt for this document. The ten days affords you the opportunity to study and review this document.
