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Franchise Agreements

Franchise Disclosure Document (FDD)

Drafting a compliant Franchise Disclosure Document manually requires navigating 23 complex FTC-mandated items, coordinating multiple exhibits, and ensuring precise regulatory language—a process that typically consumes 12+ billable hours. Attorneys must meticulously cross-reference federal regulations, state-specific requirements, and client data while maintaining strict formatting standards and disclosure accuracy.

Automation ROI

Time savings at a glance

Manual workflow12 hoursAverage time your team spends by hand
With CaseMark12 minutesDelivery time with CaseMark automation
EfficiencySave 60.0x time with CaseMark

The Problem

Drafting a compliant Franchise Disclosure Document manually requires navigating 23 complex FTC-mandated items, coordinating multiple exhibits, and ensuring precise regulatory language—a process that typically consumes 12+ billable hours. Attorneys must meticulously cross-reference federal regulations, state-specific requirements, and client data while maintaining strict formatting standards and disclosure accuracy.

The CaseMark Solution

CaseMark automates the entire FDD drafting process, generating all 23 required items, exhibits, and FTC-compliant disclosures in minutes. Simply input your franchisor information, fee structures, and business details, and receive a comprehensive, regulation-ready FDD that meets federal and state franchise law requirements.

Key benefits

How CaseMark automations transform your workflow

Generate complete 23-item FDDs with all required exhibits in under 15 minutes

Ensure FTC Rule compliance with built-in regulatory language and formatting

Automatically populate Item 19 financial performance representations from your data

Include pre-formatted receipt pages and cautionary statements meeting federal standards

Reduce FDD preparation time by 98% while maintaining accuracy and compliance

What you'll receive

FTC Cautionary Statement
Item 1: The Franchisor and any Parents, Predecessors, and Affiliates
Item 2: Business Experience
Item 3: Litigation
Item 4: Bankruptcy
Item 5: Initial Fees
Item 6: Other Fees
Item 7: Estimated Initial Investment
Item 8: Restrictions on Sources of Products and Services
Item 9: Franchisee's Obligations
Item 10: Financing
Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training
Item 12: Territory
Item 13: Trademarks
Item 14: Patents, Copyrights, and Proprietary Information
Item 15: Obligation to Participate in the Actual Operation of the Franchise Business
Item 16: Restrictions on What the Franchisee May Sell
Item 17: Renewal, Termination, Transfer, and Dispute Resolution
Item 18: Public Figures
Item 19: Financial Performance Representations
Item 20: Outlets and Franchisee Information
Item 21: Financial Statements
Item 22: Contracts
Item 23: Receipts
Exhibit A: Franchise Agreement
Exhibit B: Financial Statements
Exhibit C: List of Current and Former Franchisees

Document requirements

Required

  • Franchisor Business Information
  • Financial Statements
  • Fee Schedule and Investment Details

Optional

  • Existing Franchise Agreement Template
  • Franchisee Contact List
  • Financial Performance Representations
  • Trademark Registration Documents

Perfect for

Franchise Attorney
Corporate Counsel
Business Attorney
Paralegal (Corporate/Transactional)
Solo Practitioner
Small Business Attorney

Also useful for

This workflow is applicable across multiple practice areas and use cases

Attorneys forming franchise businesses need FTC-compliant FDDs as a core component of the corporate structure and legal framework for franchise operations.

Corporate formation attorneys working with clients who plan to franchise their business require FDDs as essential documentation, making this workflow directly applicable to establishing franchise-based corporate entities.

Regulatory General78% relevant

Regulatory compliance attorneys need to ensure franchise operations meet FTC Rule requirements and state-specific franchise registration laws through properly drafted FDDs.

FDD preparation is fundamentally a regulatory compliance exercise governed by FTC regulations and state franchise laws, requiring expertise in navigating complex disclosure requirements and registration processes.

Corporate General75% relevant

Corporate attorneys advising franchise businesses on ongoing compliance, expansion strategies, and franchise relationship management require updated FDDs for annual renewals and new franchise offerings.

General corporate counsel for franchisors must maintain current FDDs and update them annually or when material changes occur, making this a recurring need in franchise business operations.

M&A attorneys handling acquisitions of franchise systems or franchised businesses need to review, update, or create FDDs as part of transaction documentation and due diligence.

When franchise systems are bought or sold, FDDs must be updated to reflect new ownership and business structure, making this workflow valuable for M&A transactions involving franchise businesses.

Frequently asked questions

Q

How does CaseMark ensure my FDD complies with FTC regulations?

A

CaseMark incorporates the latest FTC Franchise Rule requirements into every template, including mandatory cautionary statements, 14-day disclosure timing language, and all 23 required items. The platform automatically formats disclosures to meet federal standards and includes state-specific addenda when needed.

Q

Can I customize the financial performance representations in Item 19?

A

Yes, CaseMark allows you to input your specific financial data and customize Item 19 disclosures based on your franchisor's actual performance. You can choose to include or exclude financial performance representations, and the system will generate compliant language for either scenario.

Q

What exhibits are automatically generated with the FDD?

A

CaseMark generates Exhibit A (Franchise Agreement reference), Exhibit B (Financial Statements placeholder), and Exhibit C (Franchisee Contact List). You can add additional exhibits as needed, and the system automatically updates the table of contents and cross-references throughout the document.

Q

How long does it take to draft an FDD using CaseMark?

A

Most attorneys complete a comprehensive FDD in 10-15 minutes using CaseMark, compared to 12+ hours manually. The time savings come from automated population of all 23 items, pre-formatted regulatory language, and intelligent data integration across sections.

Q

Does CaseMark handle state-specific franchise registration requirements?

A

Yes, CaseMark includes state-specific disclosure requirements for registration states like California, New York, and Illinois. The platform flags additional disclosures needed for your target states and can generate supplemental pages to meet state franchise law requirements.

Q

Can I update an existing FDD or create a new one from scratch?

A

CaseMark supports both scenarios. You can upload an existing FDD to update specific items or create a completely new document from scratch. The platform maintains consistency across all 23 items and automatically updates cross-references when you modify any section.

Q

How does CaseMark handle the litigation and bankruptcy disclosures in Items 3 and 4?

A

CaseMark provides structured input fields for litigation history and bankruptcy information, then automatically formats these disclosures according to FTC requirements. The system ensures you include all required details like case names, jurisdictions, and outcomes while maintaining compliant disclosure language.