What Is A Franchise Disclosure Document (FDD)?

A Franchise Disclosure Document often referred to as an FDD, is a legal document that must be disclosed to the prospective franchisee prior to the sale. All of the sections contain information that must be disclosed about the opportunity, the franchisor, fees, legal relationships, and more.

At Mulcahy LLP, we are an experienced franchise law firm that represents the following:

  • Franchisors
  • Distributors
  • Dealers
  • Sub-Franchisors
  • Master Franchisees
  • Area Developers
  • Area Representatives
  • Manufacturers
  • Franchisees
  • Franchisee Associations

Franchise Disclosure Document Sections

The FDD consists of information that is essential to potential franchisees planning to make a substantial investment. Each document must contain the following sections:

  • The franchisor and any parents, predecessors, and affiliates
  • Business experience
  • Litigation
  • Bankruptcy
  • Initial fees
  • Other fees
  • Estimated initial investment
  • Restrictions on sources of products and services
  • Franchisee’s obligations
  • Financing
  • Franchisor’s assistance, advertising, computer systems, and training
  • Territory
  • Trademarks
  • Patents, copyrights, and proprietary information
  • Obligation to participate in the actual operation of the franchise business
  • Restrictions on what the franchisee may sell
  • Renewal, termination, transfer, and dispute resolution
  • Public figures
  • Financial performance representations
  • Outlets and franchisee information
  • Financial statements
  • Contracts
  • Receipts

Regardless of whether you need a franchise disclosure document lawyer or another form of franchise legal help, Mulcahy LLP has you covered. To request a consultation with a member of our team, call us today at 949-252-9377 or use our online contact form. We are dedicated to making sure that you understand all of the details related to becoming a franchise owner.

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