What it covers
The FDD lays out fees, estimated investment, obligations, territory rules, training, litigation history, and other disclosures required in the franchise sale process.
Resource Guide
Franchise Disclosure Document Basics
The FDD is one of the most important diligence tools in franchising. This guide highlights where to slow down and what each section can tell you.
Where to focus
Pay close attention to Items 5 through 7 for fees and investment, Item 11 for franchisor support, Item 19 for financial performance information if provided, and Item 20 for system growth and turnover.
Best next step
Use the FDD as a question-generation tool. Mark anything you want clarified in validation calls, leadership meetings, or Discovery Day discussions.
Need help applying this?
Talk it through with an advisor.
Use these guides as a starting point, then bring your questions into a live consultation.