What is a Franchise Disclosure Document, also known as an "FDD"?

 

A: The Federal Franchise Rule requires that all franchisors provide prospective franchise purchasers with information in the form of a disclosure document known as a Franchise Disclosure Document (FDD).  The FDD contains 23 "Sections / Items" of information designed to inform a prospective franchisee about the the franchisor and the franchise investment that he or she is about to make.




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