Compare and Contrast: FDDs and Franchise Agreements
Many prospective franchisees, and--quite frankly--many franchisors, are confused as to the difference between the FDD and the Franchise Agreement.
The FDD is simply a picture in time and a representation of certain information, financial and otherwise, on the business opportunity a franchisee is purchasing. The terms will mirror and track many of the items in the Franchise Agreement. However, once the Franchise Agreement is signed the Franchise Agreement, not the FDD, controls.