Disclosure Document

The disclosure document, formally known as the Franchise Disclosure Document (FDD) in the U.S., is a legal requirement that outlines important information about the franchise system. It includes details about the franchisor’s history, fees, litigation, financial performance, franchisee obligations, and more. The FDD contains 23 standardized sections and must be provided to prospective franchisees at least 14 days before any agreements are signed or payments are made. Reviewing the disclosure document carefully is one of the most important steps in the franchise evaluation process.