Franchise Disclosure Agreement Template

A Franchise Disclosure Agreement Template is a formal acknowledgment confirming that the franchisor has provided the Franchise Disclosure Document (FDD) and all required exhibits to the franchisee. It details key franchise information such as fees, obligations and territory rights, enabling the franchisee to make an informed decision before signing a Franchise Agreement.

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Franchise Disclosure Agreement Template confirming FDD receipt, franchisee acknowledgment, and compliance with FTC franchise rules

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Frequently asked questions

The Franchise Disclosure Agreement is a legal document that acknowledges a franchisee’s receipt of the Franchise Disclosure Document (FDD) and related materials as required under the Federal Trade Commission’s Franchise Rule and state franchise laws. It ensures that the franchisee has reviewed the disclosures, including fees, territory rights, obligations and risks, before signing any binding agreement or paying funds. This template serves as proof of compliance for franchisors, confirming transparent disclosure and legal adherence before a franchise sale is finalized.
Both the franchisor and franchisee complete the template. The franchisor provides the business information and date of FDD delivery, while the franchisee confirms receipt and understanding of the disclosures.
The completed agreement should be signed and retained by both parties for legal compliance and recordkeeping. It does not need to be submitted to any government agency but may be requested during franchise audits or regulatory reviews.

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