What is a franchise disclosure document?

The Franchise Disclosure Document (FFD) is an important legal document that franchisor’s must give to potential franchisees before signing a franchise agreement. The Federal Trade Commissions governs the contents of the FDD. The FTC rules cover twenty-three specific disclosure items.

A franchisor needs to provide the FDD (formerly known as the uniform franchise disclosure document) 14 calendar days before the potential franchisee pays any fees or signs a contract.

The Franchise disclosure document is a product of the dark days of franchising when salesmen would greatly inflate the sales projections upon unsuspecting business owners.… Read the rest