The franchise disclosure document is one of the must-have documents for every franchise company. Various options are available to those franchisors who need to prepare their first or to update their existing FDD – they can use a Franchise Disclosure Document (FDD) Template, use the services of a franchise consultancy company or franchise legal firm, or write it themselves. Getting the paperwork done is definitely a challenging task. If it is still on your to-do list, you will need to evaluate your options as soon as possible and get it ready.
Which is the Best Way to Get Your Franchise Disclosure Document Done?
- Write it all by yourself. This option is not recommended, especially if it is going to be your first franchise disclosure document. A franchise disclosure document must be prepared in strict compliance with FTC rules. In addition, each of the U.S franchise registration states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin) has specific franchise laws and regulations regarding the way a FDD must be written. If you lack legal or financial knowledge and experience, you may end up with a poorly prepared document and get your franchise registration rejected. Another reason why you should not try to get this done all by yourself is that you are likely to waste a lot of time and, again, there is a great chance that your franchise disclosure document will not meet FTC and state requirements.
- Use the services of a franchise consultancy company. There are many franchise consultancy companies that can help with FDD preparation. This is a good solution for those who cannot write it all by themselves. Of course, you need to dedicate a portion of your budget, as the services of such companies are often expensive. Having your FDD prepared by professionals also doesn’t guarantee that you will have it ready fast.
- Franchise attorneys. Getting your franchise disclosure document reviewed by a franchise attorney is another approach. You can try to write most of the document by yourself and then find an expert to review it and make the necessary corrections. This is a good solution for experienced franchisors who know what they are doing and need legal help just to make sure everything complies with the latest franchise laws.
- Use a Franchise Disclosure Document (FDD) Template. This method is the most efficient one, provided that you are using an FTC Compliant template, developed by franchise experts and reviewed by experienced franchise attorneys. It is suitable for both new franchisors and existing franchisors who need to update their FDD. The biggest advantages of using an FDD template is that it saves a lot of time and money. Franchisors can dedicate only a day or less for getting it done – a timeframe impossible to reach using either of the above approaches. Most of the Franchise Disclosure (FDD) Templates available are very affordable.