Business FDD Template

BUSINESS FDD TEMPLATE

RECITALS

WHEREAS, Franchisor Name: is engaged in the development, operation and licensing of the franchise business known as Franchise Trade Name: (the "Franchise System"); and

WHEREAS, Prospective Franchisee Name: desires to obtain the right to operate a franchise under the Franchise System and Franchisor is willing to grant such rights subject to the terms and conditions set forth in this Agreement and the disclosures provided herein.

WHEREAS, the parties intend that this Franchise Disclosure Document and accompanying Franchise Agreement set forth the material terms, fees, obligations, territory limitations, disclosure items, and other material facts necessary for Franchisee to make an informed decision about entering the franchise relationship.

SCOPE OF WORK

Description of Franchise Operations and Obligations. Franchisor will provide to Franchisee the right to operate the franchised business using Franchisor's trademarks, systems, manuals, initial training, and ongoing support as described below. Franchisee shall operate the business in accordance with Franchisor's standards, specifications and operating manuals.

PAYMENT TERMS

Initial Franchise Fee: Franchisee shall pay an initial, non‑refundable franchise fee in the amount of payable as set forth below.

Ongoing Fees: Franchisee shall pay ongoing royalties equal to of Gross Sales, payable monthly and remitted no later than the day of the month following the accounting period.

Late Payment and Interest: Any sum not paid when due shall accrue interest at the rate of (or the maximum rate permitted by law), plus reasonable collection costs and attorneys' fees incurred by Franchisor in collecting such sums.

TERM AND TERMINATION

Term Commencement Date: This Agreement shall commence on and, unless earlier terminated in accordance with this Agreement, shall continue for an initial term of years, expiring on .

Renewal: Renewal rights, if any, are subject to Franchisor's then-current policies, Franchisee's compliance with this Agreement, payment of any renewal fee, and execution of any renewal documentation required by Franchisor.

Termination for Cause: Franchisor may terminate this Agreement for material breach by Franchisee after written notice and an opportunity to cure where feasible. Grounds for immediate termination include, without limitation, willful infringement of intellectual property, misappropriation of funds, repeated failure to pay fees, or material deviation from required operating standards that pose a risk to public health or safety.

CONFIDENTIALITY

Confidential Information means any non‑public information disclosed by Franchisor to Franchisee, including but not limited to operating manuals, proprietary methods, pricing, supplier lists, training materials, marketing plans, financial projections, and customer information. Franchisee shall (a) hold Confidential Information in strict confidence; (b) use Confidential Information solely for purposes of operating the franchised business; and (c) disclose Confidential Information only to Franchisee's employees or contractors on a need‑to‑know basis who are bound by confidentiality obligations no less protective than those in this Agreement. Confidentiality obligations shall survive termination or expiration of this Agreement for a period of five (5) years, or longer as required by applicable trade secret law.

INTELLECTUAL PROPERTY & LICENSE

Franchisor grants Franchisee a limited, non-exclusive, non-transferable license to use the Franchisor's trademarks and trade dress solely in connection with the operation of the franchised business at the approved location and in accordance with this Agreement and Franchisor's standards. Franchisee acknowledges that all goodwill associated with the trademarks inures to the benefit of Franchisor.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. Any dispute arising out of or relating to this Agreement shall be resolved in the courts located within that State, subject to the parties' right to seek provisional relief in any appropriate jurisdiction.

ENTIRE AGREEMENT

This Franchise Disclosure Document, together with the Franchise Agreement, appendices and schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, whether oral or written. No amendment or modification shall be binding unless in writing and signed by authorized representatives of both parties.

FRANCHISEE ENTITY INFORMATION

Corporation LLC Partnership Individual/Sole Proprietor

ADDITIONAL PROVISIONS

Notices required under this Agreement shall be given in writing to the respective addresses set forth above or to such other address as the receiving party may designate by written notice to the other party delivered in accordance with this paragraph. Notice shall be effective upon receipt.

Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect to the fullest extent permitted by law.

Counterparts and Electronic Execution: This Agreement may be executed in counterparts and by electronic signature, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

Certification: Each party represents and warrants that the individual signing below is duly authorized to execute this Agreement on behalf of the party and bind the party to its terms.

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