Give us a call - 865.910.8149
Give us a call - 865.910.8149
Franchise disclosure document (FDD)
Creating a compliant and effective FDD is one of the most critical steps in franchising your business. We’ll help you do it right.
One of the most important franchise documents that your business will need is the Franchise Disclosure Document, or FDD. This legal document is required by the Federal Trade Commission (FTC) and must be presented to individuals interested in buying your franchise.
The purpose of the FDD is to provide detailed information to potential franchisees so that they can make an informed decision before investing in your business.
This document allows your franchisees to evaluate your franchise honestly and helps to protect both you and your investors.
We ensure your FDD covers everything required by law and structured to protect your business.
Detailed explanation of your franchise opportunity, company background, and brand structure.
Clarifies what you are responsible for providing—and what franchisees must do in return.
Breakdown of all initial fees, ongoing royalties, marketing contributions, and required startup costs.
Includes optional performance representations (Item 19) and mandatory legal details like litigation history, trademarks, and audited financials.
Your FDD must be updated annually and may require adjustments as your business evolves. We help franchisors:
Whether you’re building your FDD from scratch or updating your current one, we provide a clear process to make it efficient, accurate, and legally sound.
Initial Consultation & Data Collection
Legal Drafting & Financial Coordination
Review and Compliance Check
FDD Finalization + State Filings
Annual Updates & Ongoing Support
A poorly constructed FDD can delay franchise sales—or worse, expose you to legal risk. Our team helps you avoid the most common mistakes franchisors make when drafting or filing their documents.
At Accurate Franchising, Inc., we help you create a comprehensive, legal, and effective FDD. Our team has years of experience creating FDDs that are up-to-date, compliant with current franchise laws, and structured to clearly explain your business. We work hand-in-hand with franchise attorneys and consultants to ensure your document is accurate and easy to understand.
Every FDD must include these disclosures as mandated by the FTC. Here’s what your future franchisees will see.
Overview of your company, history, and ownership structure.
Backgrounds of key executives and franchise leadership.
Any relevant lawsuits involving the franchisor or leadership.
Disclosure of any bankruptcies related to the franchisor or key individuals.
All upfront costs the franchisee must pay to the franchisor.
Ongoing or additional fees (e.g., royalties, tech fees, marketing fees).
Total cost to open and operate a franchise for the first 3 months.
Any approved or required suppliers the franchisee must use.
Legal and operational responsibilities of the franchisee.
Any financing options offered by the franchisor.
Overview of the support provided before and after opening.
Explanation of territory rights and whether they are exclusive.
Details of the franchisor’s trademarks and legal status.
Intellectual property included with the franchise.
Legal and operational responsibilities of the franchisee.
A form the franchisee signs to confirm receipt of the FDD.
Legal rights and procedures regarding the franchise agreement lifecycle.
If any celebrities or influencers are involved in promoting the brand.
Historical earnings data, if the franchisor chooses to disclose it.
Number and location of outlets, transfers, closures, etc.
All agreements the franchisee will be required to sign.
Limitations on product/service offerings.
Audited financials from the past three years.
Certain states require additional registration or filing before you can offer franchises. We help franchisors understand their state’s requirements and manage the process from start to finish. These states require your FDD to be reviewed and approved before you can offer or sell franchises there:
These states don’t require registration but do require you to file a copy of your FDD or a notice before offering/selling:
Writing, updating, and distributing the franchise disclosure document, or FDD, is a key part of growing your business with new franchise locations. This important legal document is chock full of information that your franchise partners need to know before they invest in your brand. The experts at Accurate Franchising, Inc. can help you compile the data into your FDD so that it covers every required point and shows your prospects why yours is a great brand.
Yes, if you plan to franchise your business in the U.S., you are legally required to have a Franchise Disclosure Document (FDD). This document, mandated by the FTC, must be provided at least 14 days before any agreement or payment and includes key information about your franchise to help prospective franchisees make informed decisions.
You must provide the FDD at least 14 days before signing any agreement or receiving any payment from a prospective franchisee.
The FDD contains 23 required items, including details about the franchisor’s background, fees, legal obligations, financial performance, and operational guidelines.
The FDD must be updated annually and whenever there are material changes affecting the franchise offering.
While U.S. law requires an FDD for domestic franchising, international markets have varying requirements, and Accurate Franchising can help you navigate the specific legal needs for each country.
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