Item 1: The Franchisor and any Parents, Predecessors, and Affiliates

This section provides a description of the company and its history.

Item 2: Business Experience 

This section provides biographical and professional information about the franchisors and its officers, directors, and executives.   

Item 3: Litigation 

This section provides relevant current and past criminal and civil litigation for the franchisor and its management. 

Item 4: Bankruptcy

This section provides information about the franchisor and any management who have gone through a bankruptcy.  

Item 5: Initial Fees 

This section provides information about the initial fees and the range and factors that determine the amount of the fees.   

Item 6: Other Fees 

This item provides a description of all other recurring fees or payments that must be made.

Item 7: Estimated Initial Investment 

This item is presented in table format and includes all the expenditures required by the franchisee to make to establish the franchise. 

Item 8: Restrictions on Sources of Products and Services 

This section includes the restrictions that franchisor has established regarding the source of products or services. 

Item 9: Franchisee’s Obligations 

This item provides a reference table that indicates where in the franchise agreement franchisees can find the obligations they have agreed to. 

Item 10: Financing 

This item describes the terms and conditions of any financing arrangements offered by the franchisor.

Item 11: Franchisor’s Assistance, Advertising, Computer Systems, and Training 

This section describes the services that the franchisor will provide to the franchisee. 

Item 12: Territory 

This section provides the description of any protected territory and whether territories will be modified. 

Item 13: Trademarks 

This section provides information about the franchisor's trademarks, service and trade names.   

Item 14: Patents, Copyrights, and Proprietary Information 

This section gives information about how the patents and copyrights can be used by the franchisee.   

Item 15: Obligation to Participate in the Actual Operations of the Franchise Business 

This section describes the obligation of the franchisee to participate in the actual operation of the business. 

Item 16: Restrictions on what the Franchisee May Sell 

This section deals with any restrictions on the goods and services that the franchisee may offer its customers.   

Item 17: Renewal, Termination, Transfer, and Dispute Resolution Procedures 

This section tells you when and whether your franchise can be renewed or terminated and what your rights and restrictions are when you have disagreements with your franchisor.   

Item 18: Public Figures 

If the franchisor uses public figures (celebrities or public persons), the amount the person is paid is revealed in this section.  

Item 19: Financial Performance Representations 

Here the franchisor is allowed, but not required, to provide information on unit financial performance.

There is no assurance your business will achieve the same results.

Item 20: Outlets and Franchisee Information 

This section provides an outline of the company’s franchised locations from the previous three years. This item of the FDD gives prospective franchisees an idea of the size and growth of the franchisor.

Item 21: Financial Statements 

Audited financial statements for the past three years are included in this section. 

Item 22: Contracts 

This item provides of all the agreements that the franchisee will be required to sign. 

Item 23: Receipts 

The last two pages of every Disclosure Document are acknowledgements that you received the Disclosure Document (as required by Federal Law). Franchisors will request that you sign and return the receipt pages upon receiving the documents. Franchisors are required at minimum to provide you 14 days to review the FDD in full.