Create Your Franchise Disclosure Document (FDD)

Build a legally-compliant FDD that meets all FTC requirements. This template helps you protect your franchise, maintain compliance, and communicate clearly with potential franchisees.

Franchise Disclosure Document (FDD) Template

A Franchise Disclosure Document (FDD) is a legally required document that franchisors must provide to potential franchisees at least 14 days before any franchise agreement signing or payment. This comprehensive template ensures compliance with Federal Trade Commission (FTC) requirements while protecting both franchisor and franchisee interests.

What This Template Is For

This FDD template helps franchisors create a complete and compliant disclosure document that includes all 23 mandatory sections required by the FTC. It's designed to provide clear, transparent information about your franchise opportunity while meeting all legal requirements and protecting your business interests.

When To Use This Template

Use this template when:

  • Starting a new franchise system
  • Updating your annual FDD
  • Expanding into new territories
  • Making material changes to your franchise offering
  • Preparing for franchise sales activities

How To Customize It

Follow these steps to customize your FDD:

  1. Review all 23 required sections carefully
  2. Input your specific franchise information in each section
  3. Include accurate financial statements and data
  4. Add territory specifications and restrictions
  5. Detail all fees and investment requirements
  6. Outline support services and obligations
  7. Have legal counsel review the completed document

Common Use Cases

The FDD template serves various franchise scenarios:

  • Restaurant and food service franchises
  • Retail store franchises
  • Service-based franchise systems
  • Home-based franchise opportunities
  • Multi-unit franchise offerings

Best Practices

  • Use clear, straightforward language
  • Provide detailed financial information
  • Include comprehensive territory definitions
  • Specify all fees and payment terms
  • Detail training and support systems
  • Update annually as required by law

Template Variations

Customize the template for:

  • Single-unit franchises
  • Area development agreements
  • Master franchise arrangements
  • International franchise offerings

Success Stories

Our template has helped numerous franchises establish successful systems, including a national coffee shop chain that expanded to 50 locations and a home services franchise that grew from 3 to 100 units in three years.

Frequently Asked Questions

How often must an FDD be updated?

FDDs must be updated annually and whenever material changes occur in your franchise system.

What financial statements are required?

The FDD must include audited financial statements for the most recent three fiscal years.

Can I modify the 23 sections?

While you must include all 23 sections in the specified order, you can customize the content within each section to match your franchise system.

Do state requirements differ?

Yes, some states have additional requirements beyond federal regulations. Always check state-specific guidelines.

Is legal review required?

While not legally required, having an experienced franchise attorney review your FDD is highly recommended to ensure compliance.