The U.S. Franchise Disclosure Document contains 23 required disclosure items.
The Federal Trade Commission’s Franchise Rule organizes the document into 23 numbered Items covering the franchisor, the franchise system, and the proposed investment. The topics range from business experience and litigation to fees, estimated startup costs, trademarks, territory, training, franchisee obligations, contracts, and financial statements.
The number refers to disclosure categories, not necessarily 23 pages or 23 separate forms. Some Items contain extensive supporting material, and state franchise laws may require addenda or additional information. Item 19, concerning financial performance representations, is notable because the FTC format permits it to be omitted if the franchisor makes no such representation.
The final numbered section, Item 23, is the receipt for the FDD. A prospective franchisee signs it to acknowledge receiving the document. That receipt does not replace the disclosures; it records delivery of them and helps establish compliance with the pre-sale disclosure process.