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Franchise Disclosure Document (FDD) template
Franchise Disclosure Document (FDD) sample


What is Franchise Disclosure Document (FDD)?

Franchise Disclosure Document (FDD) Provides prospective franchisees with detailed information about the franchisor, its business model, fees, and other essential details to inform their investment decision.



Sample template:



Franchise Disclosure Document (FDD) of FreshBite Eateries Inc.


1. Introduction

This Franchise Disclosure Document (FDD) is issued by FreshBite Eateries Inc. (hereinafter referred to as the "Franchisor") and provides comprehensive information to prospective franchisees (hereinafter referred to as the "Franchisee") about the Franchisor's offers within the fast-casual dining industry. By signing this Agreement, the Franchisee agrees to adhere to the terms and conditions outlined within this FDD.



2. Grant of Franchise

2.1. Grant and Acceptance


The Franchisor hereby grants to the Franchisee, and the Franchisee hereby accepts from the Franchisor, subject to the terms and conditions of this Agreement, the right, license, and privilege to operate a FreshBite Eateries Inc. fast-casual dining outlet (the "Franchise") at a location to be approved by the Franchisor in accordance with the terms of this Agreement (the "Location").



3. Location and Development

3.1. Site Selection and Approval


Within thirty (30) days of the execution of this Agreement, the Franchisee shall submit in writing to the Franchisor for its written approval a specific site for the Location. The Franchisor shall have the right to approve or disapprove of the proposed site in its sole and absolute discretion. If the Franchisor disapproves of the proposed site, the Franchisee shall submit another proposed site within thirty (30) days of receiving the Franchisor's written notice of disapproval.



4. Franchise Fee and Other Payments

4.1. Initial Franchise Fee


Upon execution of this Agreement, the Franchisee shall pay the Franchisor a non-refundable initial franchise fee in the amount of $30,000.00 (the "Initial Franchise Fee"). Upon receipt of the Initial Franchise Fee, the Franchisor shall provide the Franchisee with the right to use the FreshBite Eateries Inc. trademark, trade name, service mark, and associated proprietary rights for the operation of the Franchise.


4.2. Continuing Royalty Fee


The Franchisee shall pay the Franchisor a continuing royalty fee equal to 5% of the Franchise's gross sales, exclusive of taxes, as defined in this Agreement (the "Royalty Fee"). The Royalty Fee shall be payable to the Franchisor on or before the tenth (10th) day of each month during the term of this Agreement.


4.3. Marketing Fee


The Franchisee shall pay the Franchisor a marketing fee equal to 2% (the "Marketing Fee") of the Franchise's gross sales, exclusive of taxes, during the term of this Agreement. The Marketing Fee shall be payable to the Franchisor on or before the tenth (10th) day of each month during the term of this Agreement.



5. Training and Support

5.1. Initial Training Program


The Franchisor shall provide the Franchisee with an initial training program which will cover restaurant management, food preparation, and customer service (the "Initial Training Program"). The Initial Training Program shall be conducted at a location designated in writing by the Franchisor and shall consist of a minimum of forty (40) hours of classroom and on-the-job training over a two (2) week period.


5.2. Ongoing Training and Support


The Franchisor shall provide the Franchisee with ongoing training and support, including on-site consultations, telephone support, and periodic visits by the Franchisor's representatives to the Franchise's location. The Franchisor shall have the right to require the Franchisee to attend additional mandatory training programs as deemed necessary by the Franchisor.



6. Proprietary Rights

6.1. Intellectual Property


The Franchisee recognizes that the trademarks, service marks, trade names, logos, and other intellectual property used by the Franchisor (collectively, the "Proprietary Rights") are valuable assets of the Franchisor and that any goodwill associated with such Proprietary Rights belongs exclusively to the Franchisor. The Franchisee shall not contest or assist others in contesting the validity or ownership of the Proprietary Rights.


6.2. Usage of Proprietary Rights


The Franchisee shall use the Proprietary Rights only in connection with the operation of the Franchise and only in a manner authorized by and in compliance with the terms and conditions of this Agreement and the Franchisor's guidelines. The Franchisee shall not use any Proprietary Rights in a manner that might be deemed detrimental or injurious to the reputation or goodwill of the Franchisor, its affiliates, or its other franchisees.



7. Termination

7.1. Termination for Cause


Either party may terminate this Agreement for cause upon thirty (30) days prior written notice to the other party, if the other party defaults in the performance of any material obligation under this Agreement, and such default is not cured within such thirty (30) day period.



8. Miscellaneous

8.1. Governing Law


This Agreement shall be governed by and construed in accordance with the laws of the United States.



IN WITNESS WHEREOF, the parties have executed this Franchise Disclosure Document (FDD) as of the ___ day of ___, 20__.



Franchisor: FreshBite Eateries Inc.


By: ________________________


Name: ________________________


Title: ________________________




Franchisee: ________________________


By: ________________________


Name: ________________________


Title: ________________________

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Common Sections of a Franchise Disclosure Document (FDD)


In this Franchise Disclosure Document (FDD), you will see the following sections:

  1. Introduction
  2. Grant of Franchise
  3. Location and Development
  4. Franchise Fee and Other Payments
  5. Training and Support
  6. Proprietary Rights
  7. Termination
  8. Miscellaneous


Summary of each section:

  1. Introduction : This section introduces the Franchise Disclosure Document (FDD) and explains that it provides information about the franchisor's offers and the terms and conditions that the franchisee must follow.

  2. Grant of Franchise : This section explains that the franchisor is granting the franchisee the right to operate a FreshBite Eateries Inc. outlet at an approved location, subject to the terms and conditions of the agreement.

  3. Location and Development : This section outlines the process for selecting and approving a location for the franchise. The franchisee must submit a proposed site for approval, and the franchisor has the right to approve or disapprove the site.

  4. Franchise Fee and Other Payments : This section details the fees the franchisee must pay, including an initial franchise fee, a continuing royalty fee, and a marketing fee. It also explains when these fees are due and how they are calculated.

  5. Training and Support : This section describes the training and support the franchisor will provide to the franchisee, including an initial training program and ongoing training and support. The franchisor may also require the franchisee to attend additional mandatory training programs.

  6. Proprietary Rights : This section explains that the franchisee recognizes the value of the franchisor's intellectual property and agrees not to contest or assist others in contesting the validity or ownership of these rights. The franchisee must use the proprietary rights only in connection with the operation of the franchise and in compliance with the agreement and the franchisor's guidelines.

  7. Termination : This section outlines the circumstances under which either party may terminate the agreement for cause, such as a default in the performance of a material obligation that is not cured within a specified time period.

  8. Miscellaneous : This section covers various miscellaneous provisions, such as the governing law of the agreement.

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