What's Your Next?

The Franchise Disclosure Document (FDD) Item 13 Explained

April 11, 2023 Stacey Riska Episode 35
What's Your Next?
The Franchise Disclosure Document (FDD) Item 13 Explained
Show Notes


There are 23 items in the Franchise Disclosure Document (FDD) and we're going to give a brief review of Item 13. If you haven’t been following along with our reviews of the previous FDD items you might want to check those out if you haven't because a lot of these are progressive, meaning they lead into some of the future items that you would need to know information from items previously to kind of understand these particular items. Item 13, pertains to trademarks, copyrights, and other intellectual property that you have rights to under the franchise agreement.

This item really breaks down into a few different areas. 

  1. Trademarks 
  2. Royalties 
  3. Advertising
  4. Intellectual property
  5. Enforcement

So, let's talk about trademarks, this is a really, really big one. This one has to do with the right to use their logos, the right to use their marketing materials, and things like that. This is one probably that the franchisor cares the most about because it's the rights to use the name, the logo, and the branding, and ultimately that's what you're paying for the rights to use. So you want to make sure that you have a legal right to do so. 

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