The term "FDD" stands for which of the following?
A) Franchise Disclosure Document
B) Franchisee Disclosure Document
C) Franchisor Disclosure Document
D) Federal Disclosure Document
E) None of the above

Question

Quizplus · Accepted Answer

FDD stands for Franchise Disclosure Document, which is a legal document that must be given to potential franchisees by franchisors at least 14 days before the signing of any agreement or payment. It contains details about the franchise system, fees, obligations, trademarks, and other essential information. The purpose of the FDD is to provide transparency and help prospective franchisees make an informed decision about investing in a franchise.

The Term "FDD" Stands for Which of the Following