If you’re thinking about buying into a franchise or a current franchisee and just curious about your franchisor’s current FDD, one of the most important documents you’ll ever read is the Franchise Disclosure Document (FDD). This is the roadmap that shows you how the franchise works, what it will cost, and what you can expect from the franchisor.
But here’s the tricky part: FDDs aren’t always easy to find. Many franchisors provide them only when you’re in active discussions, but there are actually several websites that let you review FDDs online before you even start talking with a sales rep.
As franchise attorneys, we always recommend reviewing an FDD with a legal professional before signing anything. But if you’d like to do some research on your own first, here are a few websites to help you get started finding and looking at FDDs.
State Franchise Filing Websites
If you live in a registration state (like California, Illinois, Minnesota, New York, or Washington), the state government often requires franchisors to file their FDDs with the state. Some of these are available for free online. For example:
- California Department of Financial Protection and Innovation offers public access to franchise filings.
- Minnesota Department of Commerce also provides searchable franchise filings.
- Indiana Secretary of State also provides searchable franchise filings.
These state websites can be goldmines if you know where to look.
Why This Matters for You
Being able to review an FDD before you’re deep in franchise talks gives you a head start. You’ll understand the initial fees, ongoing royalties, territory rules, and even how many franchisees have left the system in recent years.
Of course, reading an FDD can feel like reading another language – that’s where we come in. Our firm helps franchisees break down the fine print so you can make decisions with confidence.
Bottom Line
Before you invest your time, money, and energy into a franchise, do some digging. Use these websites as a starting point, but don’t skip the step of having an experienced attorney review your FDD. It could save you from making a very expensive mistake.
