Login Register

What is the Franchise Disclosure Document (FDD)?

The Franchise Disclosure Document (FDD) was previously called the UFOC, or Uniform Franchise Offering Circular. This document gives a thorough description of a franchise’s history, the nature and extent of its products or services, the fees charged by the franchisor, the operational requirements, and the financial calculations involving prior sales, real estate, and profit objectives.

The FDD should also state that past success does not guarantee future success, nor can the FDD make promises as to future profits or revenues. It should, however, provide a detailed account of the business up to date.

The FDD is required by the industry’s “FRANCHISE RULE,” and must include a number of disclosures pursuant to the Code of Federal Regulations, Volume 16, Part 436. The Franchise Rule Compliance Guide can be found at www.ftc.gov/bcp/edu/pubs/business/franchise/bus70.pdf

In most states it is also illegal to offer or sell a franchise until the franchisor has registered the FDD with the appropriate state agencies.

If you wish to review FDD's, we would suggest you visit the FDD Exchange.

Recent Articles

Home Care Franchise: A Guide for Potential Owners

What is a home care franchise? A home care franchise is a business opportunity where the rights are purchased to […]

How to Sell a Franchise: What You Need to Know

Can I sell my franchise to someone else? Yes, you can sell a franchise to someone else, but the process […]

Why a Salad Franchise is a Fruitful Financial Opportunity

Are salad franchises profitable? Salad franchises can be profitable, but success depends on various factors including location, competition, quality of […]

Home-based Franchise: 12 Options You Can Run Remotely

Can you run a franchise from home? Yes, it is possible to run a home-based franchise, depending on the nature […]

Turnkey Business for Sale: What to Know Before You Buy

Are turnkey businesses profitable? The profitability of turnkey businesses can vary depending on various factors such as the industry, market […]

In Business for Yourself.. and Totally by Yourself !

The much used statement, which screams the benefit of buying a franchise: “In Business For Yourself BUT Not By Yourself,” […]

Featured Franchisors

Featured Franchisors

Featured  Resales

Pizza & Sandwich Place-Kankakee County!
High-Volume Well-Established - Sales Over $1.3 Million
Thriving Commercial Cleaning Business
Profitable, Recurring Revenue, Unique Niche, Motivated Seller
Express Employment Princeton NJ
Express Employment Office Resale
Once Upon A Child Elk Grove, CA
Children's Resale Store for Sale!
Express Employment in Brazoria TX
Opportunity to own an existing staffing business!
Sit Means Sit - North Fort Myers, FL
Great opportunity to own an established dog training franchise

Featured Resales