Franchises Attorney in New York, New York

What is a franchise disclosure document (FDD)?

New York, NY franchise law attorney Richard L. Rosen discusses franchise disclosure documents (FDD).

More In This Category

View Transcript

well the fdd is as the name implies a

disclosure document and it includes 23

items of information

varying from the background of the

franchisor and the fdd is a document

that the franchisor must provide to a

prospective franchisee

you’ve got the background of the

franchisor litigation history

what all the costs and expenses are

going to be

what the franchisor is doing with

respect to how many units has it opened

what is it projecting that is going to

open it includes certified and audited

financial statements that the franchisor

has to include but a key key item is

what we call item 19 and that’s where

the franchisor has the the right not the

obligation but the right to provide

earnings information and projections so

that the franchisee or prospective

franchisee will have some idea what kind

of revenues and perhaps even

profitability that the franchisee can

expect

More Videos From This Lawyer