The Franchise Disclosure Document (FDD) is made up of 23 items, each of which is required by the FTC. These items give franchise candidates the information they need to make an informed decision about investing with your franchise.
Item 1
THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS
AND AFFILIATES
Item 2
BUSINESS EXPERIENCE
Item 3
LITIGATION
Item 4
BANKRUPTCY
Item 5
INITIAL FEES
Item 6
OTHER FEES
Item 7
YOUR ESTIMATED INITIAL INVESTMENT
Item 8
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Item 9
FRANCHISEE’S OBLIGATIONS
Item 10
FINANCING
Item 11
FRANCHISOR’S ASSISTANCE, ADVERTISING,
COMPUTER SYSTEMS AND TRAINING
Item 12
TERRITORY
Item 13
Item 14
PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
Item 15
OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION
OF THE FRANCHISE BUSINESS
Item 16
RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
Item 17
RENEWAL, TERMINATION, TRANSFER AND
DISPUTE RESOLUTION
Item 18
PUBLIC FIGURES
Item 19
FINANCIAL PERFORMANCE REPRESENTATIONS
Item 20
OUTLETS AND FRANCHISEE INFORMATION
Item 21
FINANCIAL STATEMENTS
Item 22
CONTRACTS
Item 23
RECEIPTS
Exhibits to the Disclosure Document & Franchise Agreement
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Franchise Disclosure Document (FDD)
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Franchise Agreement (FA)
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Form of Non-Disclosure & Non-Compete
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Form of Gerneral Release
-
Form of Personal Guarantee
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Form of Franchisee Disclosure Acknowledgment Statement
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Required State Addendums
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Receipt, EFT Authorization and other required attachments