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Understanding the Franchise Disclosure Document (FDD)

When you are interested in buying a franchise, you will start to hear an acronym popping up in conversations. An FDD, or franchise disclosure document, is a legal disclosure document that must be provided to you as part of the presale due diligence process.

We always recommend having a franchise attorney review your franchise agreement as well as the franchise disclosure document before you make the decision to buy a franchise.

In this video, you’ll learn about the 23 items that are included in the FDD—such as corporate information, fees, estimated initial investment, financing, franchisee’s obligations, assistance, financial statements, and contracts.