Franchise disclosure document (FDD) guides

A practical, FTC-cited framework for reading the FDD before you sign a franchise agreement or pay the franchisor.

Item 19 is where franchisor performance claims live when they are made. Learn what the disclosure can and cannot prove.

Franchise fees are more than the initial franchise fee. Item 5 and Item 6 show the cost structure you need to model.

Item 7 is the franchise startup-cost table. The hard part is deciding whether the disclosed range is enough for your site, ramp, and financing.

A protected territory is only as strong as its definitions, carve-outs, reserved channels, and remedies.

Item 17 is where exit, renewal, default, transfer, dispute, and post-term restrictions become practical owner risk.

Litigation and bankruptcy disclosures do not answer every risk question, but they can show patterns worth investigating.

Item 20 is where the system footprint and turnover story become visible enough to investigate.

Item 21 helps you ask whether the franchisor has the financial capacity to support the system it is selling.

Required suppliers can protect brand standards, but they can also change margins and operating flexibility.

The 14-day rule is a minimum federal disclosure timing protection, not a deadline to finish diligence.

Use this checklist to identify the FDD issues that deserve deeper review before you sign or pay.