[WEST PALM BEACH, 02/01/2019] – Accurate Franchising Inc. is experienced in creating franchise disclosure documents (FDDs). It assists clients in compiling the required FDD information to create a well-constructed FDD that accurately represents the franchise.

A Critical Legal Requirement for Franchisors

The Federal Trade Commission (FTC) requires franchisors to inform prospective franchisees of the complete nature of their business. The commission also requires franchisors to update the contents of their FDD within the first 120 days (four months) of the fiscal year.

Franchisors must provide prospective investors with a complete FDD at least 14 days before the signing of any agreement or monetary transactions. This gives prospective franchisees enough time to review the information before making their decision.

Helping Prospective Franchisees Make an Informed Choice

The FDD breaks down comprehensive investment information into 23 items.

The first several items provide prospective franchisees with a detailed look into the company’s history and owners. These include the business experience and background of business owners and operators, current and previous litigation, and more.

The FDD lists all related fees (initial and recurring), the factors used to determine said fees, and the total estimated initial investment. The document also discusses:

• Restrictions on sources of products and services
• Franchisee’s obligations
• Terms and conditions about financing agreements
• Franchisor’s assistance, advertising, computer systems, and training
• Territory information, including exclusivity and modifications
• Patents, copyrights, and proprietary information
• Any selling restrictions
• Franchise renewal, termination, transfer, and dispute resolution
• Outlets and franchisee information
• Financial statements from the past three years

About Accurate Franchising Inc.

Accurate Franchising Inc. is a leading franchise consulting company with over thirty years of experience in the franchise industry. The firm helps clients turn their business into a long-lasting and successful franchise. Its services include franchise development, international expansion, and real estate assistance. The company’s modern sales methods help over 300 franchises grow their business each year.

For more information or a free franchise feasibility consultation, visit https://www.accuratefranchising.com.