FDD
The Franchise Disclosure Document the FTC requires franchisors to give prospective franchisees before they buy or take a transfer.
Last updated September 5, 2026
The FDD describes the franchisor, fees, territory, litigation, bankruptcy, outlets, and financial performance representations, among other items. Transfer buyers should receive the current FDD and the franchise agreement they will sign, not only the seller’s old copy. Waiting periods and state franchise registration rules can affect timing. The FDD is disclosure; it is not a substitute for unit-level financials.