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The Franchise Disclosure Document (FDD) is a legal document that the Federal Trade Commission (FTC) requires franchisors to provide to prospective franchisees before selling a franchise.
To prove timely delivery of the Franchise Disclosure Document (FDD), Item 23 requires franchisors to obtain a signed receipt for the FDD furnished to each prospective franchisee.
FTC 14-Day Rule: FTC regulations require that you distribute a complete Franchise Disclosure Document (FDD) with exhibits to all prospective franchisees on a date that is on a date that is not less than 14 days prior to the signing of any agreement or the acceptance of any money.
The FDD is divided up into 23 sections and the potential franchisee must review each of them before signing. ing to the FTC, franchisors have an obligation to provide the franchisee with the FDD at least 14 days before it needs to be signed or before any initial money is exchanged.
In Wisconsin, offers of franchises are regulated by the Division of Securities in the Department of Financial Institutions (DFI), under the Wisconsin Franchise Investment Law, Wis. Stat.
The annual registration filing fee is $400. The fee for filing a material change amendment is $200, but such amendments are effective only through the remainder of the effective period for the registration they amend.
Ing to the FTC, franchisors have an obligation to provide the franchisee with the FDD at least 14 days before it needs to be signed or before any initial money is exchanged. The franchisee has a right to a copy of the FDD after the franchisor has received the application and agreed to consider it.
The "issuance date" is simply the date the franchisor finalizes a franchise disclosure document (FDD). The issuance date should change each year when a franchisor files its annual report/renewal registration, but the issuance date does not change when the franchisor files an amendment during its registration period.