Sending the Franchise Disclosure Documents

How to send the Franchise Disclosure Document (FDD)

As a standard practice, it’s recommended to provide the Franchise Disclosure Document (FDD) to a prospective franchisee before engaging in serious discussions about the sale or potential sale of a franchise. Even if a prospect requests the FDD early in the sales process, you’re obligated to provide it to them. Typically, we send the FDD shortly after the prospect attends a discovery day. However, if you believe the prospect is ready for it earlier, feel free to send it to them to initiate the holding period.

To ensure compliance with regulations, the prospect must retain the document for a complete 14 calendar days for review before we can proceed with accepting signatures and/or payments from them. It’s important to note that we do not include the day we initially emailed the document to them in this count. For instance, if we send the FDD to a prospect on the 1st of the month, the earliest we can finalize signatures on the franchise agreement and accept payments for the franchise fee is on the 16th (hence, you’ll often hear us refer to it as the 16-day holding period).

When you email the prospect the FDD, be sure to include the FDD Receipt Confirmation Form from Salesforce. When they click the form and submit it back to us, it will record that info directly into the Salesforce Lead.

You can click this link to get an email template that you can use to send to the prospect along with the FDD. – FDD Email Template

Below is a video with step-by-step instructions for this process.

**Please note that we cannot provide the FDD if we are not approved in the state where the prospect resides or intends to operate a 1st Class franchise.**