Thinking about joining a franchise? Before you sign any agreement or hand over your money, you’ll be given something called a Franchise Disclosure Document (FDD) — especially if the franchise is based in the United States.

This document might look intimidating, but understanding what’s inside it is essential to protecting your investment. At ApexCounsel, based at Bourn Quarter, Wellington Way, Cambridge, CB23 7UE, we help UK and EU business owners make confident franchise decisions with clear guidance, tools, and free legal advice UK wide.

📥 Download our Free Franchise Agreement Review Checklist

📘 What Is a Franchise Disclosure Document?

The Franchise Disclosure Document (FDD) is a legal document that franchisors in the United States are required by law to provide to potential franchisees at least 14 days before signing any agreement or making payment.

It contains 23 disclosure items that give you a detailed look into the franchisor’s background, operations, fees, obligations, and risks. While it may seem like a mountain of paperwork, the FDD is your best defence against unexpected problems.

🔍 A Simple Breakdown of the FDD’s 23 Key Items

Here’s what you’ll find inside an FDD — in plain English:

1. Franchisor Background

Who are they, how long have they been around, and what’s their business model?

2. Business Experience

Details about the management team and their history in franchising.

3. Litigation History

Any past or current lawsuits involving the franchisor or key people.

4. Bankruptcy

Has the franchisor filed for bankruptcy in the past?

5–7. Franchise Fees

Details on upfront costs, recurring royalties, advertising fees, and any other payments.

📞 Need help reviewing fees? Call 0330 057 5898 for free legal advice.

8. Restrictions on Goods and Services

You may be required to buy products or services from specific suppliers. These rules can affect your profit margins.

9. Franchisee Obligations

What exactly are you required to do? This section outlines your daily responsibilities.

10. Financing Options

Will the franchisor help finance your purchase or set up the business?

11. Training and Support

What training will you receive before and after launch?

12. Territory Rights

Will you have exclusive rights to a certain area, or can other franchisees open nearby?

13. Trademarks

Covers the trademarks and branding you’ll be allowed to use.

👉 Need help here? We offer free trademark legal advice and free intellectual property legal advice.

14. Patents, Copyrights, and Proprietary Info

Includes other intellectual property protections beyond trademarks.

15. Obligation to Operate Personally

Are you required to run the business yourself, or can someone else manage it?

16. Sales Restrictions

Limits on what you can sell and how you can promote it.

17. Renewal, Termination, Transfer

Covers the fine print on what happens if you want to renew, exit, or sell the franchise.

📥 Download our Free Franchise Legal Risk Assessment Guide (UK & US)

18. Public Figures

Is a celebrity or well-known figure involved in promoting the brand?

19. Financial Performance Representations

Sometimes franchisors include data on how well existing franchisees are doing.

⚠️ These figures can be misleading. Always ask for proof and consult a legal expert.

20–21. Outlets and Franchisee Info

Includes details on franchise closures, transfers, and contact info for current franchisees.

22. Financial Statements

Gives you a view of the franchisor’s financial health.

23. Contracts

A list of the actual contracts you’ll be asked to sign, including the franchise agreement itself.

🛠 Don’t Go It Alone — Use ApexCounsel

You don’t need to be a lawyer to understand a franchise disclosure — but you do need the right tools and support. At ApexCounsel, we make it simple with:

• ✅ Free legal documents and guides

• 🧾 Tools to create legal documents online free

• 📄 Templates to make legal documents online free

• 💬 Access to free contractor legal advice and more

👉 Explore our full legal library

📍 Get Expert Help Today

Whether you’re reviewing your first FDD or comparing multiple franchise opportunities, we’re here to help.

📍 ApexCounsel
Bourn Quarter, Wellington Way, Cambridge, CB23 7UE
📞 Phone: 0330 057 5898
🌐 Visit Our Website

✅ Final Tip: Don’t Just Skim — Understand Before You Sign

The FDD is more than paperwork — it’s your window into the business you’re about to join. Take the time to read it properly, use our checklists, and ask for help when needed.

📥 Download the Free Franchise Agreement Review Checklist
📘 Get the Franchise Legal Risk Assessment Guide (UK & US)
📞 Call us at 0330 057 5898 for free legal advice UK

ApexCounsel – Helping You Read Between the Lines Before You Sign on the Dotted One.