The Franchise King®

What Are The 23 Items Contained In A Franchise Disclosure Document (FDD)?

partial image of 23 items in franchise disclosure document

A Franchise Disclosure Document (FDD) always includes 23 items that provide essential information about the franchise opportunity. These items are standardized by the Federal Trade Commission (FTC) in the United States. However…

The 23 items in the FDD are not verified. What? Huh?



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That’s right. Although the U.S. government (via the Federal Trade Commission), requires every franchise company (franchisor) registered to offer and sell franchises here to provide information under each of the 23 items, that information won’t be verified by the FTC.

That means only one thing.

You’re the person who needs to verify that the information contained in the FDD is factual. But don’t worry, it’s not difficult to do if you know how.

With those things in mind, let’s take a look at the 23 items that are included in the FDD.

Note: You should never have to pay to get a Franchise Disclosure Document. Get them free here.

The 23 Items In The FDD

Here they are, in order:

  • The Franchisor, its Predecessors, and its Affiliates
  • Business Experience
  • Litigation
  • Bankruptcy
  • Initial Franchise Fee
  • Other Fees
  • Initial Investment
  • Restrictions On Sources Of Products And Services
  • Franchisee’s Obligations
  • Financing
  • Franchisor’s Obligations
  • Territory
  • Trademarks
  • Patents, Copyrights and Proprietary Information
  • Obligation To Participate In The Actual Operation Of The Franchise Business
  • Restrictions On What The Franchisee May Sell
  • Renewal, Termination, Transfer And Dispute Resolution
  • Public Figures
  • Earnings Claims-Financial Performance Representations
  • List Of Outlets
  • Financial Statements
  • Contracts
  • Receipt

There you have it.

The 23 items in the FDD.



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While it’s important for you to go through each and every one of them, it’s even more important to hire a good franchise attorney to help you figure them out.

Because franchise lawyer’s write and read FDD’s all the time. They know what to look for. And they can quickly spot red flags for you to be aware of.

Finally, for details on each FDD item, head on over to the FTC website.

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franchise article written by joel libava
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joel libava

I'm The Franchise King®, Joel Libava. For 23+ years, I've helped thousands of people avoid bank account emptying mistakes.
If you want to make a smart, informed decision on franchises to own, I can help you, too!
This is Important!
I'm NOT a franchise broker/consultant/coach. I'm a Franchise Ownership Advisor who's not paid sales commissions by franchisors!

You Speak True Words
You speak true words that I knew from your book and our conversations before I began my quest. Do your research, FDD doesn’t tell the whole story, talk to franchisees and the money isn’t everything. Having taken all this into consideration I found my franchise family and am more than happy with it. "

- Wolfgang Willems, Assisting Hands Franchisee, Texas
"The opportunity is often lost by deliberating."
- Publilius Syrus