Minds → Franchise → What must a franchise disclosure document contain? Answer in under 90 words, be extremely concise. Cite only eCFR (www.ecfr.gov) sources.
US FederalWhat must a franchise disclosure document contain? Answer in under 90 words, be extremely concise. Cite only eCFR (www.ecfr.gov) sources.
Under 16 CFR § 436.5, a Franchise Disclosure Document (FDD) must contain Items 1–23, including franchisor identity and principal business address (Item 1), business experience (Item 2), litigation (Item 3), bankruptcy (Item 4), initial fees (Item 5), other fees (Item 6), estimated initial investment (Item 7), source restrictions (Item 8), franchisee obligations (Item 9), financing (Item 10), training and assistance (Item 11), territory (Item 12), and trademarks (Item 13). Item 19 covers financial performance representations.
Last verified: 2026-08-28 · Sources checked: 2/2 resolving · Next scheduled review: 2026-11-26
Details / How it works
The FTC Franchise Rule at 16 CFR Part 436 requires franchisors to deliver an FDD containing the specific items enumerated in § 436.5, covering identity, fees, investment, obligations, territory, trademarks, and training.
Numbers & thresholds
| Item | Subject | Citation |
|---|---|---|
| 1 | Franchisor, parents, predecessors, affiliates | § 436.5(a) |
| 2 | Business experience | § 436.5(b) |
| 3 | Litigation | § 436.5(c) |
| 4 | Bankruptcy | § 436.5(d) |
| 5 | Initial fees | § 436.5(e) |
| 6 | Other fees | § 436.5(f) |
| 7 | Estimated initial investment | § 436.5(g) |
| 8 | Restrictions on sources of products and services | § 436.5(h) |
| 9 | Franchisee's obligations | § 436.5(i) |
| 10 | Financing | § 436.5(j) |
| 11 | Assistance, advertising, computer systems, training | § 436.5(k) |
| 12 | Territory | § 436.5(l) |
| 13 | Trademarks | § 436.5(m) |
| 19 | Financial performance representation | § 436.5(s) |
Exceptions & edge cases
Transactions exempted under Subpart E of 16 CFR Part 436 are excluded from the disclosure obligations in § 436.2 and the content requirements of § 436.5.
Sources
- [1]U.S. Government Publishing Office / Federal Trade Commission — 16 CFR 436.5 — Franchise Rule — required contents of the franchise disclosure document · as of 2026-08-28
- [2]U.S. Government Publishing Office / Federal Trade Commission — 16 CFR 436.2 — Franchise Rule — obligation to furnish the franchise disclosure document (FDD) · as of 2026-08-28
Ask this MIND
This answer is static and source-locked. Ask Franchise your version of this question.
Related questions
This is general information, not advice. Franchise summarizes primary sources (FTC, State Franchise Regulators) as of the dates shown. It is not tax/legal/immigration advice and doesn’t account for your situation. Consult a qualified professional before acting. About this MIND
This page is one mind’s knowledge, published.
MIND turns your documents into a queryable, citable knowledge graph.
Make your own MIND →Content licensed CC BY 4.0 · Attribution: "Source: MIND (m-i-n-d.ai)" · License terms