- Written by Steve Marr
When you review a franchise opportunity for prospective purchase, you will receive documents from each franchisor called the Federal Disclosure Document (FDD). The law requires that a prospective franchisee must receive the document 14 days before signing a franchise agreement. The reason for the law is to insure time to review the document. The FDD contains a lot of information about a franchise: rights, obligations, how the business will operate, potential income, past legal issues, and many other factors. Most appreciate time to understand and review the document. No one should rush this process.