What's Your Next?

The Franchise Disclosure Document (FDD) Item 12 Explained

March 23, 2023 Stacey Riska Episode 34
What's Your Next?
The Franchise Disclosure Document (FDD) Item 12 Explained
Show Notes


We are going to be looking at Item number 12 of the FDD, the Franchise Disclosure Document, what it’s about, and why it's important. If you have been following along we've done the previous ones Items 1 to 11. So please go back and check those out and learn what a lot of those have built up to some of these later items that we're getting into now. Item number 12 is really important for those types of franchises where there is a built-in territory, meaning there's a geographic area attached to what you're acquiring and where you are able to do business with your franchise.

This is really broken down into a few sections in this particular item. 

  • Section number one is the description of the territory
  • Section number two is competition
  • Section number three is territory protection, we'll call it that. And what happens if and how can you or can you at all do business outside of your territory? 

So with that, we are going to provide some feedback about how our franchise that we really don't have a territory assigned to ours and what that means. There are many franchises that don't have territories or there are some that they're national in scope. Let's say they're, you're doing business-to-business and so, therefore, you could work with businesses all over the country. So there are no territory restrictions, but that would be outlined in this item. 

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