What kind of information is in a FDD?
A. The FDD consists of 23 separate items of information and is intended to provide the franchisee with all of the material information concerning the franchise system that the franchisee will need to make an informed decision as to whether or not to purchase the franchise. Conceptually, the FDD is similar to a stock prospectus in that the purpose is to provide sufficient accurate information so that the franchisee can make an informed investment decision. Among the 23 items of information contained in the FDD, the franchisor must provide a history of the franchisor and its founders, information relating to the types of products offered under the franchise and the general condition of the marketplace for those types of goods, a description of the initial franchise fees and all fees which are to be paid during the course of the franchise relationship, a description of the kinds of assistance the franchisor will supply to its franchisees, an explanation of the system standards for adverti
