Tag: FDD

Oct 12
Understanding FTC Guidelines for Item 19 Disclosures in Franchise Documents

  Item 19, also known as the “earnings claim” or “financial performance representation,” is a crucial section in a franchise disclosure document (FDD). It provides potential franchisees with information about the actual or potential financial performance of the franchise opportunity. However, the Federal Trade Commission (FTC) regulates the use of Item 19 disclosures to ensure […]

Jul 17
How to Present the Franchise Disclosure Document (FDD)

  Presenting the Franchise Disclosure Document (FDD) is a critical step in the franchise sales process. The FDD contains essential information about the franchise system, its operations, and legal obligations. Here are some steps to effectively present the FDD to potential franchisees:   1. Schedule a Meeting Arrange a meeting with the potential franchisee to present […]