In the United States the Federal Trade Commission www.ftc.gov governs the Franchise Disclosure Document (FDD) as it relates to Franchising Laws and Policy and is a legal Pre-Sale disclosure document presented to prospective franchise buyers. Prior to July of 2007 the Franchise Disclosure Document (FDD) was known as the Uniform Franchise Offering Circular (UFOC). The number one source for finding the Franchise Disclosure Document (FDD) in a prepackaged bundle is FranZoom, our team provides many years worth of franchise development, marketing, and sales experience. At FranZoom we also offer a comprehensive template package containing all the necessary templates needed to keep you organized and on track for successful franchising.
Public Disclosure of information that is essential to prospective franchisees is governed by the Federal Trade Commission Rule of 1979. This rule prohibits private rights of action for violations of mandated disclosure provisions of the Franchise Disclosure Document (FDD). This means that only federal or state governments may either sue or negotiate consent rescissions or decrees upon franchisors in violation of the Franchise Disclosure Document (FDD) or the FTC Franchise Rule. The Franchise Disclosure Document (FDD) specifically identifies who may prepare, sign, and furnish the Franchise Disclosure Document (FDD) to a prospective franchisee. The delivery of the Franchise Disclosure Document (FDD) may be in any of the following forms; hardcopy, on a disc, or via an email or webpage.
Why the Franchise Disclosure Document (FDD) Affects your Franchise Business.
The Franchise Disclosure Document (FDD) also identifies the length of time a franchisee must be given to review such documents and any revisions. Federal Trade Commission governing policies state that prospective franchisee’s must be given a minimum of 14 days to review such documents before being required to sign and or pay any monies to franchisors or their affiliates. Being prepared and following through on your due diligence as a franchisor is key to making your business attractive to prospective franchisees.
It’s imperative you learn how to complete an accurate Franchise Disclosure Document (FDD) and all of the rules and policies applicable when dealing with a prospective franchisee. Even a single error either in the Franchise Disclosure Document (FDD) itself or in the delivery of it can cause a franchising deal to be null and void. At FranZoom you can find all the information and documentation needed in cost effective and affordable bundled packages. Our packages contain the most up-to-date templates and guides that walk you through all the necessary steps toward compliance and successful franchise business practices.