FDD Resources

Item 9: Franchisee’s Obligations

Content

A disclosure of all the “principal obligations of the franchisee under the franchise and other agreements” after the deal has been signed.

Purpose

To provide the prospect with detailed instructions about where to find every obligation in the legal agreement with the franchisor.

Tips & Advice

This is a detailed section displayed in a table, and it is another great example of the transparency of the disclosure document. It will refer to the sections in the franchise agreement the franchisee must be aware of. Read this section closely to allow you to more fully understand the franchisor’s expectations and your obligations as a franchisee.