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What is a Franchise Disclosure Document and Why is it Important?

The franchise disclosure document (FDD), formerly referred to as the Uniform Franchise Offering Circular (UFOC), is a detailed report that is updated annually with new information for every registered franchise opportunity. The importance of the franchise disclosure document in franchise transactions should not be understated. It is packed full of useful information on the franchise system, including details on franchisee earnings, agreements, contracts and manuals, financial statements and much more. Needless to say, experienced franchise acquisition consultants commonly regard the FDD as the single most important report for prospective franchisees to review prior to buying a franchise unit or investing in a franchise system.  That’s why we devoted the resources we did to create our comprehensive collection of old and new Franchise Disclosure Document (FDD) reports.

Click here to search Franchise Disclosure Document FDD Reports now!

What Information is in the Franchise Disclosure Document?

The slide show below will provide you with a quick introduction to the franchise disclosure document, what type of information the FDD contains and why it is an important part of the pre-purchase franchise due diligence process.

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Franchises Ineligible for SBA Loans

Attorneys with the Small Business Association (SBA) have put together a list of Issues of Financial Assistance Eligibility that they have identified in various franchise or or franchise-like agreements, which SBA calls Franchise Findings. The Franchise Findings list contains the names of franchises that have requirements in their Franchise Agreements that could cause the business to be ineligible for SBA business loans. The SBA Franchise Findings list is provided for use by Lenders/CDCs to aid in evaluating the financial assistance eligibility of small businesses that operates under a Franchise Agreement or similar type of contract.

List of Franchise Companies that may not qualify for SBA Financial Assistance Loans

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