GLOSSARY

Franchise Disclosure Document (FDD)

The Franchise Disclosure Document (FDD) is a legal document that franchisors are required to provide to potential franchisees in accordance with the Federal Trade Commission (FTC) regulations in the United States. It contains comprehensive information about the franchise opportunity, including the franchisor’s background, financial information, obligations of both parties, franchise fees, and other essential details. Prospective franchisees use the FDD to make informed decisions about investing in a particular franchise.