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Business FDD Questionnaire

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BUSINESS FDD QUESTIONNAIRE AND ENGAGEMENT AGREEMENT

Parties and Recitals

This Business FDD Questionnaire and Engagement Agreement (the Agreement) is made between Franchisor Name: and Recipient/Consultant Name:

WHEREAS:

WHEREAS, Franchisor operates or intends to operate a business system and brand for the sale of goods and/or services under certain marks and seeks to prepare or update a Franchise Disclosure Document (FDD); and

WHEREAS, Recipient will collect, evaluate and compile information from Franchisor necessary to prepare, review, or supplement the FDD and associated disclosure schedules, subject to the terms of this Agreement; and

WHEREAS, the parties desire to set forth their respective obligations, the scope of work, compensation and confidentiality obligations relating to the Questionnaire and FDD preparation process.

Franchisor Information

Questionnaire — Business Operations

Year business established:

Fees and Financial Terms

Initial franchise fee: $

Ongoing royalty (% of gross sales): %

Advertising fund contribution (% of gross sales): %

Late payment penalty (interest or flat fee):

Scope of Work

The Recipient shall perform the following services in connection with preparation, review and delivery of the Franchise Disclosure Document and related schedules. Provide a detailed description below:

Term and Termination

Agreement start date:    Term end date (if any):

Either party may terminate this Agreement upon written notice delivered to the other party if the other party materially breaches any obligation under this Agreement and fails to cure such breach within days after receipt of written notice.

Upon termination, Recipient will deliver to Franchisor all completed work, all work in progress, and all original documents and Confidential Information in Recipient's possession, subject to retention of such copies as required by law or expressly permitted by Franchisor in writing.

Confidentiality

"Confidential Information" means non-public business, financial, technical, operational and marketing information of Franchisor disclosed to Recipient in connection with this Agreement, whether disclosed orally, in writing or in electronic form. Recipient shall: (a) use Confidential Information solely to perform its obligations under this Agreement; (b) restrict access to Confidential Information to employees, contractors or agents who have a need to know and are bound by confidentiality obligations no less protective than those hereunder; and (c) not disclose Confidential Information to any third party without Franchisor's prior written consent, except as required by law, provided Recipient gives Franchisor prompt notice to permit protective measures.

Disclosures and Attachments

Please indicate which of the following documents are attached or will be provided to support the FDD:

Intellectual Property

Governing Law; Entire Agreement

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict-of-law principles.

Entire Agreement: This Agreement, together with any attachments and the completed Questionnaire responses, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral. Any modification or amendment must be in writing signed by both parties.

Representations and Certifications

The undersigned represents and certifies that the information provided in this Questionnaire is true, complete and accurate to the best of their knowledge as of the date below, and acknowledges that such information will be relied upon by Recipient in preparing and reviewing the FDD and related materials.

Franchisor:

By:

Date:

Recipient / Consultant:

By:

Date:

Enter text✕

What the Business FDD Questionnaire Is and When It’s Used

A Business FDD Questionnaire is a structured intake form used to gather the factual, financial, and legal details needed to prepare or review a Franchise Disclosure Document (FDD) or a franchising-related due diligence package. It collects entity information, ownership and management data, financial statements, litigation and regulatory history, proprietary assets, and operational practices that feed into disclosure schedules and counsel review. Completed questionnaires speed FDD drafting, reduce follow-up requests, and create an auditable record that supports franchise compliance and prospective franchisee evaluation.

Why a Standardized Questionnaire Matters for FDD Preparation

A standardized Business FDD Questionnaire helps ensure completeness, reduces legal risk, and documents the factual basis for disclosures. It supports the FTC Franchise Rule timing and state registration processes by centralizing required facts and preserving audit trails for counsel and regulators.

Why a Standardized Questionnaire Matters for FDD Preparation

Who Typically Completes or Reviews This Questionnaire

Teams and advisors use the questionnaire to assemble consistent FDD inputs before drafting or state filing.

  • Franchisor legal teams and outside franchise counsel—collect legal history, disclosure text, and risk items for counsel review.
  • Franchise development and compliance staff—supply operational, training, and unit-level financial data that inform Item disclosures.
  • Third-party accountants and auditors—provide verified financial statements, accounting notes, and revenue data used in Item 19 projections.

Completed questionnaires reduce back-and-forth, create a defensible record, and speed internal review cycles.

Stepwise Completion Process for the Business FDD Questionnaire

Follow these sequential steps to gather, verify, and deliver questionnaire responses to counsel and compliance teams.

  • 01
    Gather Documents: Collect formation papers, financials, and contracts.
  • 02
    Populate Fields: Enter requested data using the fillable-field guidance.
  • 03
    Internal Review: Have legal and finance confirm accuracy.
  • 04
    Deliver to Counsel: Send completed package with supporting files.

Essential Sections to Include in a Professional Questionnaire

A complete Business FDD Questionnaire is modular and mirrors the FDD’s items so counsel and reviewers can map responses directly into disclosure sections.

Entity Details

Registered name, formation date, state of incorporation, EIN, principal office, and related entity chart to support Item 1 and Item 2 disclosures.

Management & Ownership

Names, titles, ownership percentages, biographies, and criminal/regulatory history for principals related to Item 2 and Item 3 disclosures.

Financials

Annual and interim financial statements, accounting methods, auditor notes, and supporting schedules used for Item 19 and Item 21.

Material Agreements

Franchise agreements, leases, supplier contracts, and IP licenses that affect disclosure text and exhibits for Items 5, 11, and 12.

Litigation & Claims

Summaries of pending, settled, and threatened claims, including outcomes and reserves, required for Item 3 and risk disclosures.

Operations & Training

Training programs, required vendor lists, and operating procedures that inform Item 11, Item 12, and post-sale obligations.

Core Data Points Required

Entity Name: Full legal name
Tax ID: EIN or TIN
Fiscal Years: Reported years
Principal Officers: Names and titles
Material Contracts: Key contract list
Litigation Summary: Active and recent cases

Common Preparation Mistakes to Avoid

  • Submitting partial financials without explanatory notes, which requires follow-up and delays counsel review.
  • Using inconsistent names or addresses across documents, leading to verification failures and filing rejections.
  • Omitting prior litigation that counsel later discovers, increasing disclosure risk and potential regulatory scrutiny.
  • Uploading scanned images with unreadable text, which prevents automated extraction and increases manual processing time.

Principal Risks and Compliance Consequences

FTC Timing: Failure to disclose timely
State Registration: Civil penalties possible
Tax Exposure: Incorrect TINs trigger withholding
Civil Liability: Material misstatements risk suits
Operational Delay: Incomplete data halts filings
Reputational Risk: Disclosure failures harm trust

Where Completed Questionnaires Typically Go

After completion, the questionnaire and supporting files flow to counsel, franchise operations, and, when required, state regulators or prospective franchisees.

  • Counsel Submission: Counsel integrates answers into the FDD.
  • Internal Compliance: Compliance archives questionnaire for records.
  • Prospective Franchisee: Included with offering materials where appropriate.
  • State Agencies: Filed where franchise registration is required.

Digital Tools and Format Standards for eSubmission

Use secure PDF or DOCX formats and a platform that preserves an audit trail, supports templates, and integrates with your systems.

  • File Formats: PDF/A, PDF, DOCX are commonly supported
  • Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365
  • Authentication: Email, SMS, or advanced signer verification

Choose a solution that captures timestamps, IP addresses, a secure audit trail, and preserves signed copies in retrievable formats for counsel and regulatory review.

Common Timelines and Deadlines to Track

Track disclosure timing, reviewer turnarounds, and any state filing windows to avoid delays in offering or registration.

FTC Disclosure Timing:

Provide the FDD at least 14 days before the franchise agreement is signed.

Internal Response Time:

Plan 7–14 business days for comprehensive questionnaire completion and document gathering.

Counsel Review:

Allow 5–10 business days for counsel to incorporate answers into the FDD.

State Filing Lead Time:

State registration processing varies; allow extra weeks for states with active review.

Record Retention Start:

Retention periods begin at document creation or FDD issuance.

eSignature Pricing Comparison for Completing and Signing Questionnaires

Compare common eSignature vendors on starting price, trial availability, bulk-send capability, audit trails, HIPAA support, and envelope caps to match your questionnaire workflow needs.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to practical questions about completing, signing, and storing the Business FDD Questionnaire, including eSignature and retention concerns.


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