The Franchise Disclosure Document (FDD) Item 9

26.01.23 08:43 PM By Stacey Riska

he Franchise Disclosure Document (FDD) Item 9


We're going to be covering the basics of Item/Section 9 of the Franchise Disclosure Document (FDD). If you've been following along, we've been covering the previous items in the Franchise Disclosure Document and in Item/Section 9, it's an interesting item of the Franchise Disclosure Document in and of itself in that it doesn't really give you a whole lot of new information that you're going to need to review. It is more like the table of contents to figure out where you can find all of the expense references that are in the various items of the FDD and in the Franchise Agreement.


So it's essentially a table that lays out almost like an Appendix or a table of contents where you can reference all these individual items/fees within these documents. In looking over the FDD, this is one of the items that to me, you don't necessarily need to spend a lot of time on just because it's not really informational, it's more just for reference. 

It's interesting that they kind of smushed this in the middle of the FDD. I mean, it's like put it in the beginning or put it in the end, but basically, it's just a table. Literally, in every single FDD we have seen this item looks mostly the same. It's a table of three columns. It’s basically going contain one column which could be everything that you would have a question about, let's say trademarks, fees, site selection, training, etc. Then the next column's going to be where and what section/item you're likely going to see that in the Franchise Agreement, which if you decide to move forward, that's where it will be in the Franchise Agreement. Then the third column is where you can find that information in the Franchise Disclosure Document, the FDD. So as a whole whatever expense item you're interested in it will guide you to where you can find it in the Franchise Agreement or where you can find it in the FDD.


So in review, for the most part, we're saying that Item/Section 9 is the card catalog for the Franchise Disclosure Document. It’s kind of LOL here on the fact they stuff it right in the middle of the document. It is important to know it's there, and it's also important to obviously use this if you have questions going back on some of those ongoing expenses that you're going to incur getting your franchise up and operating. 

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I’m Stacey Riska aka “Small Business Stacey”, your franchise placement specialist. I help aspiring business owners find the PERFECT franchise so they can get to the next level in life and business.
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