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A franchise disclosure document (FDD) is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the United States.It was originally known as the Uniform Franchise Offering Circular (UFOC) (or uniform franchise disclosure document), prior to revisions made by the Federal Trade Commission in July 2007.
The FTC administrates oversight via the FTC franchise rule. [1] The FTC announced an update to the franchise Rule on January 23, 2007, becoming effective July 1, 2007. [2] The most recent version of the FTC franchise rule was in 2007, is printed in FR 2007a, pp. 15544–15575. After July 2008, all franchisors in the United States are to use the ...
The most recent version of the FTC Franchise Rule was in 2007, is printed in FR 2007a, pp. 15544–15575. The FTC franchise rule specifies what information a franchisor must disclose to a prospective franchise business as a franchise opportunity in a document named the Franchise Disclosure Document (FDD). [3] [4]
A franchise agreement contents can vary significantly in content depending upon the franchise system, the state jurisdiction of the franchisor, franchisee, and arbitrator. It overall provides the investor with a product, a branded name and recognition, and a support system. A typical franchise agreement contains Franchise Disclosure Document (FDD)
The Federal Trade Commission has oversight of franchising via the FTC Franchise Rule. [65] The FTC requires that the franchisee be furnished with a Franchise Disclosure Document (FDD) by the franchisor at least fourteen days before money changes hands or a franchise agreement is signed. [66]
Franchise failures comprise franchise terminations, franchise non renewals and franchises that ceased operations for other reasons. All of these metrics are accessible in Item 20 of the Franchise Disclosure Document (FDD). The FDD is a uniform document regulated by the FTC. All franchisors selling franchises must update their FDDs at least once ...
In the United States, franchising is regulated by a complex web consisting of the Federal Trade Commission Franchise Rule, state laws, and industry guidelines. [5] The most recent version of the Franchise Rule was in 2007, is printed in the Federal Register / Vol. 72, No. 61 / Friday, March 30, 2007 / Rules and Regulations, pages 15544 to 15575.
A complete list of current franchises must be listed in a franchise's Franchise Disclosure Document (FDD). In addition, some franchises provide a list of franchise owners. Contacting franchises can be a time-consuming and frustrating experience because franchisees are typically busy people.