The FDD / UFOC Disclosure Document

• Legal documents such as franchise agreements, area developer agreements, non-disclosure agreements, guarantees and other legal documents that the Franchisor will require all new franchisees to sign prior to being awarded a franchise. Reviewing these items allows you to research the franchise thoroughly and ultimately decide if it is a good franchise investment for you.
  
  
• The FDD contains several sections, or "items" outlining all areas of the business. Read through the items carefully.
  
  
• The beginning of the FDD contains a cover page that outlines the total estimated costs including the initial franchise fees as well as some of the risks for that particular franchise system.

Click any line below to see:

Sample FDD Franchise Disclosure Document

Sample franchise agreement

For a free fdd disclosure document for a specific franchise, click:
Free UFOC -FDD Disclosure Document

The Federal Trade Commission (FTC) requires franchisors to provide you a Franchise Disclosure Document "upon reasonable request." The document includes the franchise agreement and all other contracts and terms for you to review as part of your due diligence process.

Click any link below for further information on any FDD Section. (item)

FDD Items:

• Item 1 - The franchisor (and any predecessor's) background includes any affiliates
• Item 2 – Business Experience
• Item 3 - Bankruptcy
• Item 4 - Litigation history
• Item 5 - Initial franchisee fees
• Item 6 - Ongoing fees
• Item 7 - Franchisees required initial investment
• Item 8 - Restriction on sources of products and services
• Item 9 - Franchisee's obligations
• Item 10 - Financing agreement
• Item 11 - Obligation of the franchisor – training, support, marketing, etc
• Item 12 - Exclusive/designated territory
• Item 13 - Trademarks
• Item 14 - Patents and copyrights
• Item 15 - Obligations of the franchisee to participate in the actual operation of the franchise business
• Item 16 – Restriction on what the franchisee can sell, i.e. goods and service
• Item 17 - Renewal, termination, transfer, and dispute resolution
• Item 18 - Arrangements with public figures
• Item 19 - Financial performance representations - actual, average, projected or forecasted franchise sales, profits or earnings.
• Item 20 - Current franchisee/franchise outlet information.  Includes contact information of franchisees past and present
• Item 21 - Financial statements
• Item 22 - Contracts
• Item 23 - Acknowledgement receipt