Franchise Disclosure Document Review (FDD)

When considering a franchise, understanding the Franchise Disclosure Document (FDD) is crucial. Our Franchise Disclosure Document Review service is designed to provide you with a comprehensive understanding of your FDD and Franchise Agreement. 

Comprehensive Annotated Summary

David will draft an annotated written summary of your FDD, including the Franchise Agreement, highlighting key areas:

• Areas of Special Concern: Identifying sections that require close attention or have significant implications for you or the business.
• Special Attention or Explanation Needed: Clarifying complex terms and conditions for better understanding.
• California Law Impact: Explaining how California law may affect specific terms of your agreement.
• Potential Negotiation Points: Highlighting clauses that may be open to negotiation to help you secure the best possible terms.

Detailed Post-Review Consultation

Upon completion of the Annotated Summary, David will set up a post-review consultation with you. 

The call, which typically takes approximately 2 hours, will cover:

• Franchising Overview: For those new to franchising, will provide a detailed overview of the franchising model and how it differs from other business models.
• Summary Review: A detailed review of the  Annotated Summary, answering any questions you may have
• Real-World Application: Clarifying points with practical, real-world application and examples.
• Negotiation Strategy: Identifying and discussing areas to negotiate, ensuring you are well-prepared to get the best deal possible. As part of this David will prepare a Negotiation Term Sheet to provide to the franchisor, with the requested changes.

Flat Fee Billing

Our FDD Review service is billed at a flat fee, ensuring transparency and value without unexpected costs. 

Frequently Asked Questions About FDDs

What is an FDD?
An FDD, or Franchise Disclosure Document, is a legal document that franchisors are required to provide to prospective franchisees. It contains essential information about the franchise, including the franchisor's background, the costs involved, the obligations of both parties, and more. The FDD is designed to help potential franchisees make informed decisions about investing in a franchise.  You should have an experienced franchise attorney review the FDD, as well as review it in detail with you.

Can I negotiate the terms of an FDD?
Some franchisors will negotiate the terms of the Franchise Agreement. It’s beneficial to create a list of proposed changes after the FDD review to  with the franchisor and have an attorney assist you in the negotiation process to help secure the best possible terms for your franchise.

What happens if I don’t understand a part of the FDD?
You should enlist a franchise attorney to review the FDD with you, so you understand each disclosure and provision of the franchise agreement before you enter into the franchise agreement.

How often is the FDD updated?
Franchisors are required to update their FDD annually or whenever there is a material change in the business.

What is the FTC Rule regarding FDDs?
The FTC Rule mandates the form and content of the FDD and along with state law the process of providing the FDD to potential franchisees at least 14 days before any franchise agreement is signed or any consideration is made. This rule is designed to give prospective franchisees sufficient time to review and understand the document before committing.

FDD Review in California & Nationwide

By choosing our FDD Review service, you gain a thorough understanding of the franchise opportunity, empowering you to make informed decisions and negotiate effectively.

Call (888) 631-0048 to learn more about our Franchise Disclosure Document Review services.