Get the Real Scoop on the
Franchise Disclosure Document (FDD), Compliance is Key to Successful
Franchising Practices!
In the United States the
Federal Trade Commission
www.ftc.gov governs the
Franchise
Disclosure Document (FDD) as it relates to Franchising Laws and
Policy and is a legal Pre-Sale disclosure document presented to prospective
franchise buyers. Prior to July of 2007 the Franchise Disclosure Document
(FDD) was known as the Uniform Franchise Offering Circular (UFOC). The
number one source for finding the Franchise Disclosure Document (FDD) in a
prepackaged bundle is
FranZoom,
our team provides many years worth of franchise development, marketing, and
sales experience. At
FranZoom
we also offer a comprehensive template package containing all the necessary
templates needed to keep you organized and on track for successful
franchising.
Public Disclosure of
information that is essential to prospective franchisees is governed by the
Federal Trade Commission Rule of 1979. This rule prohibits private rights of
action for violations of mandated disclosure provisions of the Franchise
Disclosure Document (FDD). This means that only federal or state
governments may either sue or negotiate consent rescissions or decrees upon
franchisors in violation of the Franchise Disclosure Document (FDD) or the
FTC Franchise Rule. The Franchise Disclosure Document (FDD) specifically
identifies who may prepare, sign, and furnish the Franchise Disclosure
Document (FDD) to a prospective franchisee. The delivery of the Franchise
Disclosure Document (FDD) may be in any of the following forms; hardcopy, on
a disc, or via an email or webpage.
Why the
Franchise Disclosure Document (FDD) Affects your Franchise Business.
The Franchise Disclosure
Document (FDD) also identifies the length of time a franchisee must be given
to review such documents and any revisions. Federal Trade Commission
governing policies state that prospective franchisee’s must be given a
minimum of 14 days to review such documents before being required to sign
and or pay any monies to franchisors or their affiliates. Being prepared
and following through on your due diligence as a franchisor is key to making
your business attractive to prospective franchisees.
It’s imperative you learn
how to complete an accurate Franchise Disclosure Document (FDD) and all of
the rules and policies applicable when dealing with a prospective
franchisee. Even a single error either in the Franchise Disclosure Document
(FDD) itself or in the delivery of it can cause a franchising deal to be
null and void. At
FranZoom you can find all
the information and documentation needed in cost effective and affordable
bundled packages. Our packages contain the most up-to-date templates and
guides that walk you through all the necessary steps toward compliance and
successful franchise business practices.
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Product List
FranZoom Advanced Bundle
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FranZoom Basic Bundle
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Franchise Operations
Manual Template
Franchise Agreement Template
Franchise Disclosure
Document (FDD) Template
Existing Well-Known UFOCs
& FDDs Database
Franchise Tools & Resources
The Underground
Guide to Smart & Easy Franchising
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