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Document Id : 5868
File Type : Microsoft Word
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USA Franchise Disclosure Document
USA franchisors, provide all of your franchisee applicants with this Franchise Disclosure Document (FDD), as required by FTC regulations.
The FDD discloses all relevant information about the franchisor and the franchise business, including:- the franchisor's corporate structure and history,
- the business experience of the principals of the franchisor,
- any current or potential litigation involving the franchisor,
- initial franchise fees and other fees to be paid by a franchisee,
- restrictions on sources of products and services, and restrictions on what the franchisee may sell,
- assistance and training programs offered by the franchisor,
- trademarks, patents, copyrights and proprietary information of the franchisor,
- provisions for renewal, transfer and termination of the franchise agreement,
- dispute resolution,
- financial statements and information,
- other information that a franchisee needs in order to evaluate the business opportunity.
- The FDD also includes a list of addenda for State-specific requirements.
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