A franchise for the operation of a [TYPE OF CONTRACTING BUSINESS] business
This disclosure document summarizes certain provisions of your franchise agreement and other information in plain English. Read this disclosure document and all accompanying agreements carefully. You must receive this disclosure document at least 14 calendar days before you sign a binding agreement with, or make any payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Note that no government agency has verified the information contained in this document.
You may wish to receive your disclosure document in another format that is more convenient for you. To discuss the availability of disclosures in different formats, contact [CONTACT NAME] at [PHONE NUMBER].
The terms of your contract will govern your franchise relationship. Don't rely on the disclosure document alone to understand your contract. Read all of your contract carefully. Show your contract and this disclosure document to an advisor, like a lawyer or an accountant.
Buying a franchise is a complex investment. The information in this disclosure document can help you make up your mind. More information on franchising, such as "A Consumer's Guide to Buying a Franchise," is available from the Federal Trade Commission. You can contact the FTC at 1-877-FTC-HELP or by writing to the FTC at 600 Pennsylvania Avenue, NW, Washington, DC 20580. You can also visit the FTC's home page at www.ftc.gov for additional information. Call your state agency or visit your public library for other sources of information on franchising.
There may also be laws on franchising in your state. Ask your state agencies about them.
Issuance Date: [DATE]
This FDD template prepared with Alliance for Contractors franchise development consulting services
| Disclosure Item | Page |
|---|---|
| 1. The Franchisor and Any Parents, Predecessors, and Affiliates | __ |
| 2. Business Experience | __ |
| 3. Litigation | __ |
| 4. Bankruptcy | __ |
| 5. Initial Fees | __ |
| 6. Other Fees | __ |
| 7. Estimated Initial Investment | __ |
| 8. Restrictions on Sources of Products and Services | __ |
| 9. Financing | __ |
| 10. Franchisor's Obligations | __ |
| 11. Franchisee's Obligations | __ |
| 12. Territory | __ |
| 13. Trademarks | __ |
| 14. Patents, Copyrights, and Proprietary Information | __ |
| 15. Obligation to Participate in the Actual Operation of the Franchise Business | __ |
| 16. Restrictions on What the Franchisee May Sell | __ |
| 17. Conditions of Public Offerings | __ |
| 18. Financial Performance Representations | __ |
| 19. Outlets and Information About Franchisees | __ |
| 20. Financial Statements | __ |
| 21. Contracts | __ |
| 22. Receipts | __ |
| 23. Exhibits | __ |
The franchisor is [COMPANY NAME], a [STATE] corporation. Our principal business address is [ADDRESS]. We do business under the name [DOING BUSINESS AS NAME].
We offer franchises for the operation of contracting businesses that provide [DESCRIPTION OF SERVICES]. Our franchised businesses operate under the trade name [TRADE NAME] and provide [DETAILED SERVICE DESCRIPTION].
We began offering franchises in [YEAR]. We have been engaged in the business of [BUSINESS TYPE] since [YEAR].
Parents: [PARENT COMPANY INFORMATION OR "NONE"]
Predecessors: [PREDECESSOR INFORMATION OR "NONE"]
Affiliates: [AFFILIATE INFORMATION OR "NONE"]
The following table identifies our directors, trustees, general partners, principal officers, and other individuals who have management responsibility relating to the sale or operation of franchises offered by this disclosure document.
| Name | Position | Employment History (Past 5 Years) |
|---|---|---|
| [NAME] | [POSITION] | [EMPLOYMENT HISTORY] |
| [NAME] | [POSITION] | [EMPLOYMENT HISTORY] |
[LITIGATION DISCLOSURE - State either "No litigation to report" or provide detailed information about any litigation involving the franchisor, its predecessors, affiliates, or key personnel that must be disclosed under FTC requirements]
[BANKRUPTCY DISCLOSURE - State either "No bankruptcy to report" or provide detailed information about any bankruptcy involving the franchisor, its predecessors, affiliates, or key personnel within the past 10 years]
You must pay us an initial franchise fee of $[AMOUNT] when you sign the franchise agreement. The initial franchise fee is [UNIFORM/VARIES] and is [REFUNDABLE/NON-REFUNDABLE].
[DETAILED DESCRIPTION OF INITIAL FEES, INCLUDING ANY VARIATIONS BASED ON TERRITORY SIZE, MARKET CONDITIONS, OR OTHER FACTORS]
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | [AMOUNT OR PERCENTAGE] | [FREQUENCY] | [REMARKS] |
| Advertising Fee | [AMOUNT OR PERCENTAGE] | [FREQUENCY] | [REMARKS] |
| Training Fee | [AMOUNT] | [WHEN DUE] | [REMARKS] |
| Transfer Fee | [AMOUNT] | [WHEN DUE] | [REMARKS] |
Your estimated initial investment to begin operation of a [FRANCHISE NAME] franchise is:
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|
| Initial Franchise Fee | $[AMOUNT] | [METHOD] | [WHEN DUE] | Franchisor |
| Equipment and Tools | $[LOW] - $[HIGH] | [METHOD] | [WHEN DUE] | [TO WHOM] |
| Vehicle/Transportation | $[LOW] - $[HIGH] | [METHOD] | [WHEN DUE] | [TO WHOM] |
| Insurance | $[LOW] - $[HIGH] | [METHOD] | [WHEN DUE] | [TO WHOM] |
| Training Expenses | $[LOW] - $[HIGH] | [METHOD] | [WHEN DUE] | [TO WHOM] |
| Working Capital | $[LOW] - $[HIGH] | [METHOD] | [WHEN DUE] | [TO WHOM] |
| TOTAL | $[LOW] - $[HIGH] |
[DETAILED DESCRIPTION OF ANY REQUIREMENTS TO PURCHASE OR LEASE PRODUCTS, SERVICES, SUPPLIES, FIXTURES, EQUIPMENT, INVENTORY, COMPUTER HARDWARE OR SOFTWARE, OR REAL ESTATE FROM THE FRANCHISOR OR APPROVED SUPPLIERS]
You must purchase the following items from us or our approved suppliers:
[FINANCING INFORMATION - State either "We do not offer direct or indirect financing" or provide detailed information about any financing arrangements offered by the franchisor]
Except as listed below, we have no obligation to provide you with any assistance. Before you open your business, we will:
| Obligation | Section in Agreement | Description |
|---|---|---|
| Site selection and acquisition/lease | [SECTION] | [DESCRIPTION] |
| Pre-opening training | [SECTION] | [DESCRIPTION] |
| Initial marketing | [SECTION] | [DESCRIPTION] |
| Computer/POS system | [SECTION] | [DESCRIPTION] |
This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| Site selection and acquisition/lease | [SECTION] | Item 11 |
| Pre-opening purchases/leases | [SECTION] | Items 5 and 7 |
| Site development and other pre-opening requirements | [SECTION] | Items 7 and 11 |
| Initial and ongoing training | [SECTION] | Item 11 |
| Public grand opening | [SECTION] | Item 11 |
| Ongoing product/service purchases | [SECTION] | Item 8 |
| Maintenance, appearance and remodeling requirements | [SECTION] | Items 13 and 17 |
| Insurance | [SECTION] | Item 7 |
| Advertising | [SECTION] | Items 6 and 11 |
| Operating restrictions | [SECTION] | Items 12 and 16 |
| Records/reports | [SECTION] | Items 6 and 11 |
| Inspections/audits | [SECTION] | Items 6 and 11 |
| Transfer | [SECTION] | Item 17 |
| Renewal, termination, transfer and dispute resolution | [SECTION] | Item 17 |
You will operate your franchise business from [DESCRIBE LOCATION/TERRITORY]. We grant you the right to operate within [DESCRIBE TERRITORY BOUNDARIES].
Protected Territory: [DESCRIPTION OF PROTECTED TERRITORY OR "NONE"]
Population-based Territory: [YES/NO AND DETAILS]
Non-compete Restrictions: [DESCRIPTION OF ANY NON-COMPETE RESTRICTIONS]
You may use the trademarks, service marks, trade names, logotypes, and commercial symbols that we designate and that are part of the System (collectively, "Marks").
| Trademark | Registration Number | Registration Date | Status |
|---|---|---|---|
| [TRADEMARK] | [NUMBER] | [DATE] | [STATUS] |
Trademark Obligations: You must use the Marks only as we specify and only in connection with the operation of your franchise business. You may not use the Marks to incur any obligation or indebtedness on our behalf.
[INFORMATION ABOUT PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION - Include details about any patents, copyrights, or proprietary information that is part of the franchise system, or state "None"]
[PERSONAL PARTICIPATION REQUIREMENTS - Describe whether the franchisee must personally participate in the direct operation of the franchise business and any restrictions on use of managers]
You may offer and sell only those products and services that we have approved. You may not offer or sell any products or services that we have not approved.
Approved Products/Services:
Restrictions: [DESCRIBE ANY RESTRICTIONS ON PRODUCTS OR SERVICES]
[STATE EITHER "NOT APPLICABLE" OR PROVIDE INFORMATION ABOUT ANY CONDITIONS UNDER WHICH A FRANCHISEE MAY SELL OR ASSIGN AN INTEREST IN THE FRANCHISE]
IMPORTANT NOTICE: The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
[FINANCIAL PERFORMANCE REPRESENTATIONS - Either state "We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets" OR provide detailed financial performance information with proper disclaimers and substantiation]
Table No. 1 - System-wide Outlet Summary for years [YEAR-2] to [CURRENT YEAR]
| Outlet Type | Year | Outlets at Start of Year | Outlets at End of Year | Net Change |
|---|---|---|---|---|
| Franchised | [YEAR-2] | [NUMBER] | [NUMBER] | [NUMBER] |
| [YEAR-1] | [NUMBER] | [NUMBER] | [NUMBER] | |
| [CURRENT YEAR] | [NUMBER] | [NUMBER] | [NUMBER] | |
| Company-Owned | [YEAR-2] | [NUMBER] | [NUMBER] | [NUMBER] |
| [YEAR-1] | [NUMBER] | [NUMBER] | [NUMBER] | |
| [CURRENT YEAR] | [NUMBER] | [NUMBER] | [NUMBER] | |
| Total Outlets | [YEAR-2] | [NUMBER] | [NUMBER] | [NUMBER] |
| [YEAR-1] | [NUMBER] | [NUMBER] | [NUMBER] | |
| [CURRENT YEAR] | [NUMBER] | [NUMBER] | [NUMBER] |
Note: Additional detailed tables showing transfers, terminations, non-renewals, reacquisitions, and other changes must be included here as required by the FTC Franchise Rule.
Our audited financial statements for the fiscal years ended [DATES] are included as Exhibit [EXHIBIT LETTER] to this disclosure document. These financial statements have been prepared in accordance with United States generally accepted accounting principles.
Auditor: [AUDITOR NAME AND ADDRESS]
You will sign the following agreements when you buy your franchise:
Copies of these agreements are attached as exhibits to this disclosure document.
Detach and return the receipt to acknowledge that you received this disclosure document.
The following exhibits are attached to and made a part of this disclosure document:
This disclosure document summarizes provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.
If [COMPANY NAME] offers you a franchise, it must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
If [COMPANY NAME] does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the state administrator listed in Exhibit G.
I received a disclosure document dated [DATE] that included the following Exhibits:
[LIST OF EXHIBITS]
Date: _________________
Signature: _________________________________
Name: _________________________________
Date: _________________
Signature: _________________________________
Name: _________________________________
(Signature of spouse if required by state law)
Please sign this receipt, keep one copy, and return one copy to:
[COMPANY NAME]
[ADDRESS]
[CITY, STATE ZIP]
[PHONE NUMBER]
ALLIANCE FOR CONTRACTORS INTEGRATION NOTE: This FDD template has been prepared to meet FTC requirements for contractor franchise opportunities. Professional legal review and customization is required before use. Alliance for Contractors provides comprehensive franchise development consulting services including FDD preparation, legal compliance verification, and ongoing franchise support. For assistance with franchise development, contact Alliance for Contractors at [contact information].
DISCLAIMER: This template is for informational purposes only and does not constitute legal advice. Each franchise opportunity is unique and requires individual legal and business analysis. Consult with qualified franchise attorneys and business advisors before using this template.