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What is a Franchise Disclosure Document (FDD)?


January 15, 2024


Starting the journey of franchise ownership is an exciting endeavor, but it’s crucial to navigate the process with awareness and understanding. Central to this journey is the Franchise Disclosure Document (FDD), a comprehensive document that provides prospective franchisees with vital information about the franchise system. In this blog, we’ll delve into the significance of the FDD, with a spotlight on Lawn Squad, and how Lawn Squad prepares entrepreneurs for franchise ownership in the lawn care business through the FDD, or Franchise Disclosure Document.

What is a Franchise Disclosure Document (FDD)?

The Franchise Disclosure Document, commonly known as the FDD, is a legal document that franchisors are required to provide to prospective franchisees. It serves as a valuable resource, offering in-depth insights into the franchise system’s operations, financial health, legal obligations, and other essential aspects. The FDD aims to provide transparency and protect the interests of both the franchisor and the franchisee.

The Franchise Disclosure Document (FDD) is segmented into 23 sections, referred to as “items.” Among these, Item 19 holds particular significance for numerous aspiring franchise owners. This section, often deemed crucial, furnishes financial performance representations, serving as a valuable resource for comprehending the potential earnings within the franchise system.

The Franchise Disclosure Document stands as a vital resource for those contemplating franchise investments, with Item 19 proving particularly invaluable for grasping the financial performance of the franchise system. Our dedicated Franchise Development team is readily available to ensure you gain a transparent understanding of the franchise opportunity.

To delve deeper into our FDD, fill out our form to talk to a franchise development representative today!