# FDD (Franchise Disclosure Document)

A term used when buying franchise resale.

The document a franchisor must give you, covering fees, obligations, litigation, and territory.

Buying a franchised business means inheriting the franchise agreement, and this document is where its real terms live: transfer fees, required refreshes, [territory rights](https://searchspheresource.com/glossary/territory-rights), and the franchisor's consent over your purchase. Read the litigation section and the franchisee turnover figures as carefully as the fees. A system where units change hands constantly is telling you something the average unit revenue will not.

Part of: Buying a Franchise Resale (https://searchspheresource.com/guides/buying-a-franchise-resale)

Source: https://searchspheresource.com/guides/buying-a-franchise-resale/terms/fdd-franchise-disclosure-document
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt