Item 22 includes a list of all the documents that the prospect is expected to sign. If there are any written contracts such as a multi-unit development agreement, personal guarantees, or promissory notes you are going to require, you need to disclose those here and include them as exhibits to the FDD.
Sample Item 22
ITEM 22: CONTRACTS
The following agreements and other required exhibits are attached to this disclosure document in the pages immediately following:
- Belmont Franchise Agreement
- Belmont Lease of Premises
- USA Credit Corp. Equipment Lease
- Belmont Equipment Purchase Note
- Belmont Initial Fee Loan Agreement
- Belmont Operating Manual Table of Contents
- Belmont Confidentiality and Non-Compete Agreement for Outlet Managers
- Belmont Non-Compete Agreement for Franchisee Shareholders
- Belmont Guarantee of Performance for Franchisee Shareholders
- Belmont Mufflers Audited Financial Statements for 2005, 2006, and 2007
- Richard McDonald Audited Financial Statements for 2005, 2006, and 2007
- CTF International Audited Financial Statements for 2005, 2006, and 2007
- CTF International Guarantee of Performance
- Receipts
This is a sample section from a fictional FDD for Belmont Muffler Shops that was prepared by the Federal Trade Commission as a compliance guide for franchisors preparing their FDD. These are used to provide an idea of what these items may look like in an FDD, but keep in mind, your FDD will most likely vary significantly from these examples.
