What is a Franchise Disclosure Document (FDD) and Why is it ImportantAn explanation of the FDD, its contents, importance and how it can be used to evaluate franchises opportunities - courtesy of Franchise Consultants and Research Experts at FranchiseComplaints.org.

Further Reading & FDD ResourcesThe Franchise Disclosure Document - Wikipedia

Learn about the history, contents and importance of the FDD for the franchisor, franchisee and in franchise sales transactions more generally.

The Franchise Agreement - WikipediaInformation about items within a typical franchise agreement and details on the legal

implications and obligations of the franchisor and franchisee.

Download Franchise Disclosure Documents HereThis database features a complete collection of recent franchise disclosure documents.

Search through and download PDF copies of all the latest Franchise FDD/UFOCs.

Franchise Research & Reports - FranchiseComplaints.orgDownload comprehensive franchise research and due diligence reports.

The franchisor and any parents, predecessors and affiliates

This report of the Franchise Disclosure Document provides a general description of the company and its history. It includes details on any parent, predecessor or affiliate

companies involved or associated with the franchise system.

Business experience

This report provides biographical and professional information about the franchisors and its officers, directors and executives. It will help you look into the professional

background of key employees and executives working at the franchising company.

Litigation

The FDD litigation report provides details on current and past lawsuits involving the franchisor and/or its management. It includes a history of criminal and civil litigation for

the franchise system.

Bankruptcy

This report provides details on any bankruptcies filed by the franchisor and its management.

Initial fees

The FDD initial fees report provides detailed information on the initial costs incurred by new franchise owners. It includes information on the range and factors that determine

the amount of any initial fees associated with the franchise purchase.

Other fees

This report provides a details on all other recurring fees or payments that the franchisee is required to make to the franchisor or its affiliates.

Initial investment

A report that includes all the expenditures the franchisee is required to make to establish the franchise business.

Restriction on sources of products and services

This report highlights the franchise system’s restrictions placed on franchise owners regarding the source of products or services.

Franchisee’s obligations

This item includes a table that references where in the franchise agreement franchisees can find the obligations they have agreed to.

Financing

This item describes the terms and conditions of any financing arrangements offered by the franchisor.

Franchisor’s Assistance, Advertising, Computer Systems and Training

This report describes the services that the franchisor will provide to the franchisee.

Territory

This report provides the description of any exclusive territory and whether territories will be modified.

Trademarks

This report provides details on any trademarks, service marks and trade names of the franchisor.

Patents, copyrights and proprietary information

This item provides insight on how franchise owners are able to use the patents and copyrights of the franchise system.

Obligation to participate in the actual operation of the franchise business

This report details the franchisee’s obligation to participate in the actual operation of the franchised business.

Restrictions on what the franchisee may sell

A report that includes any and all restrictions on goods and services that the franchisee may offer its customers.

Agreement renewal, termination, transfer and dispute resolution

This report informs the franchisee whether or not his/her franchise agreement can be renewed. If your franchise can be renewed this report provides details on when and how the franchisee can renew his or her contract with the franchise system. It also includes details on when and whether your franchise can be terminated and what the rights and

restrictions of franchise owners are when it comes to disagreements with the franchisor.

Public Figures

If the franchisor uses public figures (athletes, celebrities, politicians, public persons, etc.), the company must disclose the amount the person is paid for his or her involvement with

and promotion of the franchise system or opportunities.

Financial Performance Representations

Here the franchisor is allowed, but not required, to provide information on the financial performance of franchise units. This report can be valuable for determining how much franchise owners in the system are earning. whether or not they are profitable or have

broke even on their investment with the franchise system.

List of Franchised Outlets and Franchisee Information

This report provides locations and contact information of existing franchises.

Financial statements

Audited financial statements for the past three years are included in this report. The financial statements of a franchisor can be essential in evaluating the financial health of

the franchise system as a whole.

Contracts

This section provides access to copies of all franchise-related documents and agreements that aired to be signed or initialed by the franchisee.

Receipts

Prospective franchisees are required to sign a receipt that they received Franchise Disclosure Document.