How many items are in an FDD?

Exactly 23, in a standardized order set by the FTC Franchise Rule. Any document labeled an “FDD” that does not follow the 23-item format is not a compliant disclosure document.

How long do I have to review the FDD?

At least 14 calendar days before you sign a binding agreement or pay any money. The clock typically starts when you sign the Item 23 receipt acknowledging that you received the document.

Is the franchisor required to tell me how much I'll earn?

No. Item 19 financial performance representations are optional. If the franchisor makes one, it must have a reasonable basis; if Item 19 is silent, no earnings claim is being made — and you should be skeptical of any profit promise made outside the document.

Do I need a lawyer to review my FDD?

It is not legally required, but the FDD and its attached agreement are long, technical, and binding for years. A focused review identifies the fees, restrictions, and exit terms that matter to your specific deal. See do I need my FDD reviewed. The FDD is the most complete picture you will ever get of a franchise before you buy it — and the 14-day window exists so you can actually use it. Reidel Law Firm reviews FDDs for prospective franchisees on a flat fee, with a plain-English summary of the fees, obligations, and red flags in your specific deal — get your FDD reviewed before you sign.

FRANCHISE LAW

Franchise Disclosure Document: The 23 Items Explained

Schuyler 'Rocky' Reidel July 17, 2023 6 min read

A Franchise Disclosure Document (FDD) is the standardized, 23-item disclosure a franchisor must give you at least 14 calendar days before you sign anything or pay any money. It is required by the FTC Franchise Rule (16 CFR Part 436), and every legitimate franchise offering in the United States uses the same 23 numbered I