The FDD document is addressed to the possible franchisees necessary so that they can make an appropriate and informed decision before entering a Franchise relationship. Once you have received an FDD from a franchisor, you will have to thoroughly examine the contents and find answers to any questions you may have. The franchisor will easily help you find the answers to any question. The FDD will also contain a list of franchisees and contact information. It is highly recommended that you speak with franchisees in order to gain an understanding of what it is to operate a franchise unit in your system.

Once the franchisor approves the franchise request, they will normally send the franchisee’s applicant the franchise disclosure document, or also known as FDD. The FDD is a legal document that is presented to potential franchise buyers in the pre-sale disclosure process. Provides information about the franchisor and the franchise system to the franchisee.

As all franchises are regulated by the Federal Trade Commission (FTC), it is required to have this document to present to potential franchisees. The FDD is 200 pages or more and contains a lot of very relevant information about the franchise.