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The Franchise Disclosure Document (also known as the FDD) Receipt of the FDD is governed by the “14-day rule.” This is a cooling-off period in which franchisors must give prospective franchisees 14 days to think about their decision before they sign the franchise agreement.

Ing to one well-respected franchise attorney, "Between the FDD and the franchisee, there is a franchise agreement, and everything there is on the table." This statement appears to have both a literal and figurative meaning, but the gist of it is this — unless you're requesting something truly outrageous, you have ...

There are two main types of franchising, known as Product Distribution Franchising (Traditional Franchising) and Business Format Franchising, which are conducted under a variety of franchise relationships.

The franchise disclosure document (FDD) is a legal disclosure document that must be given to individuals interested in buying a U.S. franchise as part of the pre-sale due diligence process. The document contains information essential to potential franchisees about to make a significant investment.

What is the 14-day disclosure period? Any potential franchisee needs to be provided with 14 days to review the legal documents supplied before any executed documents can be signed. What happens after the 14 days? After 14 days, the potential franchisee will be able to sign the documents.

? A franchise (or franchising) is a method of distributing products or services. involving a franchisor, who establishes the brand's trademark or trade name. and a business system, and a franchisee, who pays a royalty and often an. initial fee for the right to do business under the franchisor's name and.

? A franchise (or franchising) is a method of distributing products or services. involving a franchisor, who establishes the brand's trademark or trade name. and a business system, and a franchisee, who pays a royalty and often an. initial fee for the right to do business under the franchisor's name and.

FTC 7-Day Rule: In addition to the 14 Day Rule, the FTC also requires that no less than 7 days prior to the signing of any agreement or the acceptance of any money, you deliver to a prospective franchisee a completed copy of all agreements and related documents to be signed by the franchisee.

Here are the four most common types of franchises to consider so you can decide which franchise strategy fits you best. Franchising Basics. Single-Unit Franchise. Multi-Unit Franchise. Area Development Franchise. Master Franchise. The American Family Care Model.