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Where should I look in a US FDD?

Choose a concern to find a starting place in a US Franchise Disclosure Document (FDD), what to examine and questions to ask.

Full US FDD topic map · All 14 research topics

United States only A reading aid for the full document. No company’s actual FDD has been reviewed for this tool.

Scope and limits

This tool covers US FDD item numbers under the FTC Franchise Rule. Exemptions and state requirements can matter. It does not cover disclosure systems in other countries.

Use this as a reading aid, not a replacement for the entire FDD, its attachments, the proposed agreements or independent legal and financial review. It does not assess a franchise, give a legal conclusion or rate suitability. No company’s actual FDD has been reviewed for this tool.

There is no document-upload feature. Do not enter legal documents or personal information into the search.

14 research topics

Company and system

Who is behind the franchise?

Start with the legal entity and the people who will run the franchise system.

What to check and ask

Look for

  • Match the company names and business description to your actual offer.
  • Look at the franchisor’s operating and franchising history, and the listed managers’ recent roles.

Questions to ask

  • Which legal entity would I contract with, and which entity provides the support?
  • What experience do the people supporting this program have in businesses like mine?

A familiar brand name does not by itself identify the contracting company or the people providing support.

Related buyer guideWhich documents should I collect?

Costs and financial claims

What might I need to pay before and around opening?

Read the initial fees alongside the full estimated initial investment.

What to check and ask

Look for

  • Check each cost, payment date, payee, refund condition and footnote.
  • Identify the period covered by additional funds and the assumptions behind the estimate.

Questions to ask

  • Which opening costs would apply to my location and operating format?
  • What costs or cash needs should I budget beyond this estimate and its stated period?

Item 7 is an estimate, not a cap or a promise that the business will become self-funding within the stated period.

Related buyer guideIs the franchise fee the full opening cost?What does working capital mean?

Costs and financial claims

What fees could continue after I open?

Check the fee table, formulas, due dates and footnotes.

What to check and ask

Look for

  • Look for royalties, advertising contributions and other charges imposed or collected by the franchisor or affiliates.
  • Check minimums, definitions, refund terms and charges tied to particular events.

Questions to ask

  • Which charges apply even when sales are low or the business loses money?
  • What fees can change, and where are the change terms stated?

Item 6 does not replace a complete operating budget. Read supplier, technology and contract obligations too.

Related buyer guideCan a royalty be due if I lose money?What fees should I look for?

Running the business

Can I choose my film, suppliers and services?

Check both required purchases and restrictions on what you may sell.

What to check and ask

Look for

  • Look for required suppliers or specifications, alternative-supplier approval and franchisor interests in purchases.
  • Check required or restricted services, customer restrictions and the franchisor’s ability to change the offering.

Questions to ask

  • Which film, equipment and service requirements apply to this program?
  • How can I request a different supplier or service, and what approval or cost is involved?

These are questions about the particular offer. The finder does not establish that any brand permits a product, supplier or service.

Related buyer guideCan I buy any brand of film?

Costs and financial claims

What are the financing and guarantee terms?

Review covered franchisor-arranged financing and the actual proposed agreements.

What to check and ask

Look for

  • Check the lender, interest and charges, repayment, security, guarantees and consequences of default.
  • Read the relevant financing, guarantee and other proposed contracts, rather than relying on a sales explanation.

Questions to ask

  • Is financing actually offered, introduced through a lender or left for me to arrange?
  • Who must guarantee which obligations, and what happens after default, transfer or closure?

Item 10 is not a catalog of every external loan option. Have your lawyer and accountant review the actual terms and personal exposure.

Related buyer guideDoes the offer include financing?What is a personal guarantee?

Running the business

What training and opening support are promised?

Look for specific assistance and training obligations, with their agreement references.

What to check and ask

Look for

  • Check subjects, classroom and practical hours, trainers, location, attendance and completion requirements.
  • Separate pre-opening help from continuing support, and identify training, travel and refresher costs.

Questions to ask

  • Which training covers the services my team will actually perform?
  • How is readiness checked, and what help is available when a difficult job or operating problem arises?

A course description does not establish that you or your employees are ready for every job. Compare written commitments with your needs.

Related buyer guideWhat should training cover?How is ongoing support different?

Running the business

What do marketing and technology charges cover?

Check what the system provides, what you must do locally and what you must pay.

What to check and ask

Look for

  • Review advertising-fund use, local spending obligations and approval of your own advertising.
  • Check required systems, data access, maintenance, upgrades and associated fees.

Questions to ask

  • What advertising must be delivered in my area, and what local selling remains my responsibility?
  • What software and upgrades are required, who can access its data, and which costs can change?

An advertising contribution is not a guarantee of leads or sales for your location.

Related buyer guideDoes an advertising fee buy local leads?Will the franchisor find customers?

Running the business

What does my territory actually protect?

Read the territory’s boundaries, conditions and exceptions together.

What to check and ask

Look for

  • Check exclusivity, sales targets, changes, relocation and rights to additional outlets.
  • Look for reserved channels or competing brands, and limits on selling inside or outside the area.

Questions to ask

  • Who else may serve customers inside my territory, and through which channels?
  • What could change my rights, and how would online inquiries or wider-area accounts be handled?

Do not treat the word “exclusive” as protection from every type of competition. Check the particular rights and exceptions.

Related buyer guideWhat does a territory give me?Can territory rights change?

Running the business

Do I have to run the business myself?

Use the obligations index and the owner-participation requirements together.

What to check and ask

Look for

  • Follow Item 9’s cross-references into the relevant FDD sections and agreements.
  • Check personal involvement, supervision, manager qualifications and any ownership or training requirements.

Questions to ask

  • Which duties must I perform personally, and which may a qualified manager handle?
  • What staffing and supervision commitments would affect my working week or another job?

A description such as “manager-run” is not a substitute for the actual contractual requirements or a realistic staffing plan.

Related buyer guideWhat would I do each day?Can I keep my current job?

Costs and financial claims

How should I check a sales or earnings claim?

Find the written representation and understand exactly what its figures describe.

What to check and ask

Look for

  • Check the period, included and excluded outlets, data coverage and how many achieved the stated results.
  • Distinguish sales from profit; inspect costs, assumptions, limits and written substantiation available on reasonable request.

Questions to ask

  • Which outlets and time period support this claim, and how do they compare with my proposed business?
  • What costs are excluded, and can I review the written substantiation?

A franchisor need not make a financial performance representation. Seller claims generally belong in Item 19, subject to limited exceptions, including actual records of a specific outlet being sold and qualifying written supplements. No figure guarantees your results.

Related buyer guideWhat should I ask about earnings claims?Why can an average mislead?

Company and system

What has happened to outlets and their owners?

Read changes in the system and speak with current and former franchisees.

What to check and ask

Look for

  • Distinguish openings, transfers, terminations, non-renewals, reacquisitions and other closures in the tables.
  • Use the disclosed operator contacts to seek varied experiences, including people who left.

Questions to ask

  • What explains the changes in these categories over the disclosed years?
  • Which current and former owners can describe businesses comparable with the one I am considering?

A transfer is not automatically a closure, and net growth can hide different underlying changes. Counts alone do not show your likely outcome.

Related buyer guideWhich documents should I collect?

Company and system

What do the franchisor’s finances show?

Have an accountant review the financial statements and the entity they cover.

What to check and ask

Look for

  • Identify whose statements are presented, the reporting periods and the relevant notes.
  • Ask about resources and financial obligations that may affect the support promised to franchisees.

Questions to ask

  • Do these statements cover the company that owes me the contractual obligations, or another entity with a guarantee?
  • What questions about financial condition or support capacity should I raise before committing?

The franchisor’s financial statements are different from franchisee earnings claims. They do not predict your own profit; special disclosure provisions can apply.

Related buyer guideWhat is an FDD?

Agreements and exit

What happens at renewal, sale, closure or a dispute?

Use the summary to locate and read the proposed contract provisions.

What to check and ask

Look for

  • Check the term, renewal conditions, transfer approval, termination and default provisions.
  • Review post-exit duties, restrictive provisions and dispute procedures with your lawyer.

Questions to ask

  • What conditions, fees or changed terms could apply if I renew or sell?
  • Which obligations might continue if I close, leave or have a dispute?

Item 17 is a summary. The finder does not decide enforceability, cancellation rights or personal liability; review the full agreements and applicable law.

Related buyer guideCan I assume I can renew?Can obligations continue after exit?

Keep the whole document in view

These topics are starting points, not a complete 23-item checklist. Read every item, all attachments and every agreement you would sign. Confirm the issue date, legal entity, actual offer and any later changes.

For a US sale covered by the FTC Rule, the current FDD must be furnished at least 14 calendar days before a binding agreement with, or payment to, the franchisor or an affiliate in connection with the proposed sale. That minimum is not a deadline forcing you to decide. Ask your adviser about exemptions, state rules and revised-agreement timing.

Use this as a reading aid, not a replacement for the entire FDD, its attachments, the proposed agreements or independent legal and financial review. It does not assess a franchise, give a legal conclusion or rate suitability. No company’s actual FDD has been reviewed for this tool.

Read the US FDD guideUnderstand the review periodCheck changes to final agreementsFDD and contract: what is the difference?

Understand franchise sales roles and compensation →

Official sources

Source review: 17 October 2026.

  1. FTC Franchise Rule: disclosure items (16 CFR 436.5)US federal rule; current eCFR text
  2. FTC Franchise Rule: furnishing documents (16 CFR 436.2)US federal rule; covered transactions
  3. FTC: A Consumer’s Guide to Buying a FranchiseOfficial US buyer education
  4. FTC: Taking a deep dive into the Franchise Disclosure DocumentOfficial US buyer education
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