Franchise Genesis works with leading franchise lawyers and attorneys to prepare FDDs and other legal paperwork required for business owners to run a franchise.
A critical component of
converting a business into a franchise is a franchise disclosure document (FDD). Franchise Genesis builds successful franchise models by working alongside industry experts to complete legal documents, operations manuals, and more.
An FDD is a legal document required by the FTC that must be delivered to every prospective franchisee interested in buying a franchise in the United States as part of the due diligence process. When buying a franchise business, a franchise disclosure document (FDD) is important because it provides you with full disclosure regarding all aspects of the franchise opportunity and company history.
An FDD provides detailed information on how the franchisor and franchisee business relationship will work. The document outlines both parties' responsibilities and outlines the investment. It also provides the contact information of current Franchisees that you may contact to validate the model and opportunity.
The main purpose of an FDD is to provide a potential franchisee with details about the franchisor’s business,
the franchise system, and the franchise agreement so they can make an informed decision.
An FDD contains
23 sections or disclosure items, each requiring a franchisor's obligations to disclose important information concerning the franchisor, the entities, and individuals associated with the franchisor, the franchise opportunity, and the initial franchise fee or fees charged by the franchisor.
According to the FTC, franchisors must provide a franchise disclosure document to candidates at least 14 calendar days before the prospective franchisee signs a binding agreement or makes a payment to the franchisor.
FDD navigation can be confusing. When coupled with the United States Patent and Trademark Office, our legal advice can be necessary to you as a franchisor. Franchise Genesis works with third-party, experienced franchise attorneys who represent the franchisor in their legal proceedings. We ensure that you have a solid legal foundation so you can focus on running your business.
Along with our legal services, we also offer many other services to franchisors such as:
These services are custom-tailored to your needs as a franchisor. We provide franchise consulting to create a successful, thriving, and profitable franchise business.
What People Say About Us
"Franchise Genesis helped us build franchisee centric systems that are profitable for franchisees’ and the franchisor."
Franchise Genesis has partnered with a team of seasoned franchise law professionals to help draft FDDs and franchise agreements for new franchise brands. Having a franchise lawyer on your side can help ensure compliance with two primary principles.
The Federal Trade Commission requires franchisors to disclose the FDD to potential franchisees at least 14 days before they sign a franchise agreement or pay any money to the franchisor. The 14-day period begins once the prospective franchisee signs the FDD receipt page associated with Item 23 in the franchise disclosure document.
Certain areas in the United States require an FDD to be registered with a state agency before the franchise operates in that location. The following states require franchise registration:
Current federal franchise laws state that an FDD will expire automatically and must be renewed within 120 days of the franchisor’s specific fiscal year-end. If the franchisor’s fiscal year aligns with the calendar year, the FDD will expire and require renewal on April 30th of each year. However, FDD expiration and renewal dates can vary at the state level in franchise registration states based on the prior year's registration and state-specific requirements.
The FTC requires a franchisor to update its FDD when a "material change" has occurred to the franchisor or the franchise system. A material change is any change to the franchisor or the franchise itself that is likely to have a significant financial impact on or influences the decision-making process of the franchisee or potential franchisee.
Franchise Genesis offers a wide range of services to help businesses grow through franchising, such as consulting services, franchise creation and management, franchisor support, and the franchisor's assistance with legal documents.
You’ll work directly with experienced franchise lawyers who provide valuable legal advice. For help writing a franchise disclosure document,
contact Franchise Genesis at 980-261-5999.