The-definition.com

Definition

Franchise disclosure document (FDD)

The franchise disclosure document (FDD) is a lengthy document that contains 23 categories of information that give a prospective franchisee a broad base of information about the background and financial health of the franchisor and is accepted in all 50 states and parts of Canada.

A prospective franchisee should fully understand all the information contained in the FDD before a franchise agreement is signed.

Share it:  Cite

More from this Section

  • Master franchise agreement
    Master franchise agreement is similar to an area franchise agreement, but in addition ...
  • Primary Research
    Primary research is research that is collected by the person or persons completing the ...
  • Exclusive distribution arrangement
    Exclusive distribution arrangement is an agreement that gives a retailer or other intermediary ...
  • Financial ratios
    Financial ratios, which ratios showing the relationships between items on a firm’s financial ...
  • Entrepreneurial process
    The entrepreneurial process consists of four steps: Step 1 Deciding to become an entrepreneur, Step ...