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Understanding the FDD
The Franchise Disclosure Document is the single most important document in franchising. Here is how to read it like a professional.
The Franchise Disclosure Document, Explained
The FDD is the single document that turns a franchise sales pitch into something you can actually evaluate. Here is what it is, why federal law requires it, how its 23 items are organized, and how to use it as a working tool rather than a brochure.
The FDD Items That Matter Most
All 23 FDD items matter, but a handful carry the most signal about whether a franchise system is stable, fairly structured, and worth your capital. Here is a guided tour of the items that reward the closest reading.
Item 19 & Earnings Claims
Item 19 is the only place a franchisor can make earnings claims — and whether it exists, and how it is built, tells you a great deal. Here is how to read the methodology behind the number rather than just the number itself.