Franchise Disclosure Document
North Carolina Business Attorneys Assist with Franchising
Franchise Law Firm Gives Competent Advice to North Carolina Business Owners
The franchise disclosure document (FDD) is a format for disclosing franchisor information to prospective franchisees. The purpose of the FDD is to protect the public by providing information about the franchise company. In North Carolina, no franchise registration law has been enacted, and no franchise registration is required.
There are many categories of information that must be provided by the franchisor to the prospective franchisee no less than 10 business days prior to the finalization of a franchise agreement. These categories include:
- The franchisor, predecessors and affiliates
- Business experience
- Litigation
- Bankruptcy
- Initial investment, franchise fee, as well as other fees
- Restrictions on sources of products and what the franchisee may sell
- Obligations of the franchisor and franchisee
- Financing and financial statements
- Territory
- Trademarks
- Patents, copyrights, and proprietary information
- Obligation to participate in the actual operation of the franchised business
- Renewal, termination, transfer, and dispute resolution
- Public figures
- Earnings claims
- List of franchise outlets
- Contracts
- Receipt
A business opportunity is the sale or lease of any products, equipment, supplies, or services for the purpose of enabling the purchaser to start a business. State business opportunity law provides exemption from registration for franchisors with a federally registered trademark, but if you do not have a federally registered trademark, you must file a franchise disclosure document with the state.
Contact Our North Carolina Franchise Lawyers Today
Do you need legal advice regarding a franchise disclosure document? The experienced franchise attorneys at Law Offices of Robert Crawford are dedicated to offering legal advice to business professionals throughout North Carolina. Contact our franchise law firm online or call 919-296-8508 to schedule your free initial consultation today.
