A franchise disclosure document (FDD) is a legal document that all U.S. franchises are required to provide to potential franchisees. FDDs are valuable tools that franchisees can use to determine the current state and outlook of the franchise before making a purchasing decision. Investing in a franchise opportunity is a big commitment, and as a potential franchisee, you want to know that the business has long-term viability.
However, FDDs also delve into the individual roles and responsibilities of both the franchisor and the franchisee, giving you a clear idea of what to expect as you step into business ownership. So if you’re interested in a franchise investment, here’s what you should expect to see in a franchise disclosure document.
What information is included in a franchise disclosure document?FDDs can be long and complex, but before you commit, it’s important to go through the FDD carefully and make sure that you thoroughly understand the infor…