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This All Important Document Gives Your Prospects Vital Information

Writing, updating, and distributing the Franchise Disclosure Document, or FDD, is a key part of growing your business with new franchise locations. This important legal document is full of information that your franchise partners need to know before they invest in your brand and is a must for all franchisors to provide to comply with the ACCC. The experts at Accurate Franchising, Inc. can help you compile the data into your FDD so that it covers every required point and shows your prospects why yours is a great brand.

Want to know more about it? Here are some FAQs about the FDD.


Make an appointment with a member of our team of specialists.

Q: Does My Business Have to Have a Franchise Disclosure Document?

A: Yes
In Australia, the FDD is required by the ACCC in compliance with the Franchise Code of Conduct. The ACCC requires that franchisors be upfront with their prospects and not give misleading information just to try to sell franchises, and the franchise disclosure document is one way they do that. Creating the FDD is one of the first things you will do when you start franchising your business.

Q: When Do I Give Franchisee Prospects the FDD for Review?

A: Before they sign the franchise agreement.
Your prospects need to be able to review all the information in the disclosure document at least 14 days before they sign your franchise agreement. In fact, one of the items included in the FDD (listed below) is an acknowledgement of receipt.

Q: What Does the FDD Include:

A: There are typical items that need to be in your document.

  • details of certain types of legal proceedings against the franchisor or its directors
  • contact details of current as well as former franchisees (unless the former franchisee has requested in writing that their details not be disclosed)
  • the franchisee’s costs to start operating the franchised business and other payments or fees they may be required to make
  • details of the arrangements that will apply when the franchise agreement comes to an end (including whether the franchisee will have an option to renew or extend the agreement or enter into a new agreement).
Q: How Often Do I Need to Update my Franchise Disclosure Document?

A: Yearly

In Australia, the ACCC requires all franchisors to update their FDD annually.

In the US, the FTC requirement is that franchisors update their FDDs within the first four months (120 days) of their fiscal year. Additionally, some individual states have their own deadlines, so it is essential that you know when you need to have your update complete in your territory.

Q: Do I need an FDD if I am Franchising Internationally?

A: You need to follow the laws of the country/countries in which you are franchising.

Your responsibility as an international franchisor is to learn the laws of the country or countries in which you are expanding, and then follow those laws. Every country regulates franchises differently, so depending on your targeted country’s rules you may have to create a different document with slightly different points. The good news is AFI is the expert in international franchising, and we can help you navigate all the regulations you will face.



Accurate Franchising consultants provide strategic planning, sales support/training, marketing, operations, legal, financing and real estate assistance – all designed to help business owners grow. To provide the personalized and time-intensive consultation required, Accurate Franchising currently limits the program to five clients at a time.


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