Franchise Disclosure Document (FDD)

The Franchise  A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business... Disclosure Document (“FDD”) is a legal document that the franchisor presents to prospective franchisees in the franchise pre-sale process. Every U.S. franchise must register their Franchise Disclosure Document in order to sell the franchise opportunity. It is a very extensive document that discloses detailed information about the franchisor and the franchise.