| name | franchise-disclosure-document |
| title | Franchise Disclosure Document (FDD) |
| description | Drafts U.S. Franchise Disclosure Documents compliant with the FTC Franchise Rule (16 C.F.R. Part 436) and state franchise laws. Produces Items 1–23, required tables, exhibits, receipt pages, and state addenda. Trigger when preparing or updating an FDD, franchise registration package, or state addenda. Keywords: FDD, Franchise Disclosure Document, franchise rule, franchise registration, Item 17, Item 19, Item 20. |
| author | CaseMark |
| author_url | https://github.com/CaseMark/skills/tree/main/skills/legal/franchise-disclosure-document |
| license | Apache-2.0 |
| version | 0.1.0 |
| execution_mode | open |
| jurisdiction | us |
| practice | commercial |
| language | en |
| tags | ["agreement","drafting","regulatory","transactional"] |
Franchise Disclosure Document (FDD)
Produces a complete FTC Rule–compliant FDD with state addenda, exhibits, and receipt pages aligned to the franchise agreement suite.
Prerequisites
- Franchise agreement suite — current forms for all agreements to be executed.
- Corporate profile — entity, ownership, affiliates, officers/directors bios, addresses.
- Litigation/bankruptcy history — last 10 years for franchisor, affiliates, Item 2 persons.
- Financials — audited statements (up to 3 years) and auditor report.
- Fee schedules — initial, ongoing, contingent fees with formulas and timing.
- Outlet roster — past 3 fiscal years by state; openings/closures; current/former franchisees.
- IP portfolio — trademarks, registrations, disputes.
- Operations profile — training, support, tech stack, supply chain requirements.
- State targets — offering states and registration requirements [VERIFY].
Workflow
1. Intake & gap analysis
Build a gap log across: corporate identity, fees/investment, outlets/franchisees, IP portfolio, litigation/bankruptcy, financials. Track source docs, extracted facts, gaps, and owners.
2. Front matter
- Title block: "FRANCHISE DISCLOSURE DOCUMENT" — legal name, entity type, state of formation, principal address, effective date.
- FTC cover page cautionary statement verbatim per 16 C.F.R. Part 436 (never paraphrase).
- State law notice and agency contact (as required).
- Table of contents listing Items 1–23 and all exhibits.
3. Items 1–23
| Item | Content | Item | Content |
|---|
| 1 | Franchisor identity, affiliates, history | 13 | Trademarks, status, disputes |
| 2 | Officers/directors bios (5 yr) | 14 | Patents, copyrights, trade secrets |
| 3 | Litigation (10 yr) or negative disclosure | 15 | Franchisee/manager participation |
| 4 | Bankruptcy (10 yr) or negative disclosure | 16 | Goods/services/channel restrictions |
| 5 | Initial fees (amounts, timing, refunds) |
