Franchise Disclosure Document
What is a Franchise Disclosure Document?
If you've never looked at a franchise before, the term “FDD” probably means nothing to you. That's normal. Here's what it is, in plain English, and how it fits into talking with Advanced Building Care.
The short version
A Franchise Disclosure Document — almost always shortened to FDD — is a detailed document that a franchisor must give you before you can buy a franchise. It lays out how the franchise works, what it costs, what the company is required to do for you, and what you're required to do in return.
Think of it as the franchise's full disclosure packet. It is not a sales brochure. It's a standardized document, and much of what goes in it is dictated by federal law rather than by the company writing it.
It is usually long — well over a hundred pages once the contracts and financial statements are attached. That length is on purpose. You're meant to be able to study it before making a decision.
Why it exists
The FDD exists to protect you. The Federal Trade Commission requires every franchisor in the United States to prepare one and hand it to prospective franchisees. The requirement is part of what's known as the FTC Franchise Rule.
The idea is straightforward: before you commit money to a business opportunity, you should be able to read the same set of facts about it that everyone else considering it reads — in a predictable format, so you can compare one franchise against another.
Some states add their own franchise registration and disclosure requirements on top of the federal ones, which is why an FDD often includes state-specific pages at the back.
What's inside one
Every FDD is organized into 23 numbered Items, in the same order, no matter which franchise you're looking at. Here's roughly what those items cover.
Who you'd be doing business with
The franchisor's background and business experience, plus any relevant litigation and bankruptcy history. This is where you learn who is behind the brand and what their track record looks like.
What it costs
The initial franchise fee, the other fees you'd pay over time, and an estimate of your total initial investment. It also covers what you're required to buy and who you're required to buy it from.
What each side has to do
The franchisor's obligations — training, support, and any advertising programs — alongside your obligations as the owner, including whether you personally have to work in the business.
The rules you'd be agreeing to
Territory, trademarks, how long the agreement lasts, how it can be renewed, transferred, or terminated, and how disputes get resolved.
The numbers and the people
Audited financial statements for the franchisor, a list of current and former franchisees you can contact, and every contract you'd be asked to sign, attached in full as exhibits.
This is a plain-language summary to help you get oriented, not a substitute for the document itself. The FDD and the franchise agreement are the full and controlling terms.
One item worth understanding: Item 19
Item 19 is called Financial Performance Representations. It's the only place in the entire document where a franchisor is permitted to say anything about what a franchise might earn.
Franchisors are not required to include one, and many don't. Advanced Building Care makes no financial performance representations in Item 19. That means we do not — and legally may not — tell you what you could earn, on this website or anywhere else. Anyone selling you a franchise who talks freely about income without it appearing in their Item 19 is not following the rule.
What you can do is call the franchisees listed in the document and ask them about their own experience directly.
How this works with Advanced Building Care
If our conversations move forward, here's what happens with the document itself.
You receive the ABC FDD
We give you a complete copy of the Advanced Building Care Franchise Disclosure Document. It's yours to keep, read at your own pace, and share with your attorney and accountant.
You sign a receipt for it
The last pages of the FDD are receipt pages. You'll be required to sign one and return it to us, acknowledging the date you received the document. You keep the other copy for your records.
Then at least 14 days pass
You receive the FDD at least 14 calendar days before you sign any agreement or make any payment. That waiting period is required, and it exists so you have time to read and ask questions.
Signing the receipt does not commit you to anything. It only confirms when you received the document — which is what starts the 14-day clock. You are free to read it, ask questions, and decide not to move forward.
What to do when you get one
- Read all of it — including the exhibits and the franchise agreement itself.
- Have a franchise attorney review it before you sign anything.
- Have an accountant look at the cost items with you.
- Call the current and former franchisees listed in the document and ask about their experience.
- Write down your questions and bring them to us — we'd rather answer them early.
This page is general information about franchise disclosure documents. It isn't legal advice, and it doesn't describe the specific contents of any particular FDD. Please consult your own attorney and accountant.
Still have questions? That's the point.
Apply now and we'll walk you through the process, including when you'd receive the FDD. You can also see the investment page for the estimated costs drawn from it.