Franchise Item 23: Receipts

Item 23 of the Franchise Disclosure Document (FDD) is known as the “Receipts.” This item provides a list of documents that the franchisor has disclosed to the potential franchisee along with the FDD. It is crucial for potential franchisees as it outlines the various materials and information provided by the franchisor during the franchise disclosure process.

Here are the key components typically found in Item 23:

23.1 Documents Provided:

• List of Documents: A detailed list of all documents provided by the franchisor to the potential franchisee. This may include the franchise agreement, any amendments, and other key documents.

23.2 Timing of Receipt:

• Timing of Receipt: Information about when the potential franchisee received the disclosed documents. This ensures that the franchisee has had sufficient time to review the information before entering into the franchise agreement.

23.3 Receipt Acknowledgment:

• Receipt Acknowledgment: Some franchisors may include a receipt acknowledgment form that the potential franchisee signs to confirm the receipt of the disclosed documents.

23.4 Purpose:

The purpose of Item 23 is to provide transparency about the documents provided to the potential franchisee during the franchise disclosure process. This ensures that the franchisee has access to all relevant information needed to make an informed decision about entering into a franchise agreement.

Tips for Potential Franchisees:

• Review the List of Documents: Thoroughly review the list of documents provided to ensure you have all the necessary information about the franchise system.
• Understand Timing: Pay attention to the timing of when you received the disclosed documents. Ensure you have had sufficient time to review the information before making any commitments.
• Acknowledge Receipt: If required, sign and return any receipt acknowledgment forms to confirm that you have received the disclosed documents.

By thoroughly examining Item 23, potential franchisees can verify that they have received all the necessary documents to make an informed decision about entering into a franchise agreement. It is essential for franchisees to have access to complete and accurate information during the franchise disclosure process to understand the terms, conditions, and obligations associated with the franchise system.

LINK TO FRANCHISE DISCLOSURE DOCUMENT (FDD) ITEMS WITH BRIEF EXPLANATIONS ON FranchiseFDD.com

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

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