The Franchise Disclosure Document (FDD) is a critical legal document required by the Federal Trade Commission (FTC) in the United States. It must be provided to potential franchisees at least 14 days before any agreements are signed or payments are made. The FDD contains 23 specific items, including information about the franchisor’s background, fees, initial investment, obligations, territory rights, financial performance representations (if provided), and existing franchisees. It helps prospective owners evaluate the franchise opportunity and understand the legal and financial commitments involved. Reviewing the FDD carefully—ideally with a franchise attorney—is an essential part of franchise due diligence.
Franchise Disclosure Document (FDD)
This term
A legal document franchisors must provide to prospective franchisees, outlining key details of the franchise offering.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
