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Franchise Resale Term

FDD (Franchise Disclosure Document)

The disclosure document franchisors must give prospective franchisees, covering fees, obligations, litigation, territory rights, and (in Item 19) any financial performance representations.

Buying a franchised business means inheriting the franchise agreement; the FDD tells you what you are really signing up for, including transfer fees, required refreshes, and the franchisor's consent rights over your purchase.

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