Is the FDD the same as the franchise agreement?

No. The FDD is a disclosure document that informs your decision; the franchise agreement is the binding contract you sign. The agreement is attached to the FDD as an exhibit.

You don’t sign the FDD itself — you sign a receipt acknowledging you got it. You sign the franchise agreement, and that signature is what legally commits you.

Can I negotiate the FDD?

The FDD is largely standardized and not negotiable. Some terms in the franchise agreement, however, can sometimes be negotiated, especially with an attorney’s help before you sign.

If the FDD and the agreement disagree, which wins?

Generally the signed franchise agreement, because it’s the actual contract. That’s why you should compare the FDD’s summaries against the real agreement clauses during your review window.

When do I get each document?

You receive the FDD (with the agreement attached) at least 14 calendar days before signing. You sign the franchise agreement only after that window — and after at least 7 days with the final agreement if it changed materially. Read the disclosure and the contract together, before either is signed. Reidel Law Firm reviews Franchise Disclosure Documents and their franchise agreements on a flat fee, with a plain-English summary and direct attorney access — get a flat-fee FDD review.

FRANCHISE LAW

FDD vs. Franchise Agreement: Key Differences

Schuyler 'Rocky' Reidel July 13, 2023 5 min read

The Franchise Disclosure Document (FDD) is a disclosure tool; the franchise agreement is the binding contract. The FDD informs your decision before you buy — it discloses fees, history, and obligations across 23 standardized items. The franchise agreement is the contract you actually sign, and it governs the relationship for its full term. Both arr