Anyone looking into a franchise should understand the complexity of the endeavor. This type of business venture can definitely be a rewarding experience, but overcoming a few tough hurdles, like working through and understanding the details of a Franchise Disclosure Document (FDD), is vital.
What is a Franchise Disclosure Document?
The Franchise Disclosure Document (FDD) is a disclosure document with multiple attachments that details the purchase arrangements of a franchise. Some FDDs are exhaustive and massive — hundreds of pages. And interpreting the Federal Trade Commission’s (FTC) 124-page-long compliance guide outlining franchisor disclosure rules doesn’t make things easier.
The exhibits to the FDD include the franchise agreement and other relevant agreements controlling the franchise relationship.
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