FDD Items

FDD Item 16: What You're Allowed to Sell

Item 16 sets the limits on what you can sell and whether you can adapt to local demand. Here's how to read it.

FDD Item 15: Do You Have to Run It Yourself?

Item 15 tells you whether this is a job you show up for or an investment you oversee. The answer changes everything. Here's how to read it.

FDD Item 14: The Secret Sauce, If There Is One

Item 14 covers the patents, copyrights, and trade secrets behind the system, if there are any. It is a quiet test of what your royalty buys.

FDD Item 13: The Brand Name You're Licensing

Item 13 covers the brand name and logo you are paying to use, and whether the franchisor's rights to them are solid. Here's how to read it.

FDD Item 12: How Protected Is Your Territory?

Item 12 defines your territory, and whether the brand can open up shop near you. Protection is often narrower than it sounds. Here's how to read it.

FDD Item 11: What Support You Actually Get

Item 11 is where the franchisor's promises of support become contractual. Here's how to read what you actually get, and what's just nice words.

FDD Item 10: How the Money Gets Financed

Item 10 covers financing the franchisor offers or arranges. Read the terms like any loan, and watch for one clause in particular. Here's how.