1851

When researching franchise concepts, arguably the most important step in this process is reading a brand’s&nbsp;<a href="https://1851franchise.com/what-is-an-fdd-2705192#stories">Franchise Disclosure Document (FDD</a>). The FDD is a document that outlines the history of the business, fees, rules and restrictions, all the franchisees in a system, turnover rates, renewal terms and other aspects of a particular franchise. The FDD encompasses&nbsp;<a href="https://1851franchise.com/the-franchise-disclosure-document-what-items-are-most-important-2709318">23 Items</a>, all of which contain essential information.&nbsp;Item 17, for example, requires franchisors to disclose the location and summarize the substance of certain contractual terms in the franchise agreement that govern the franchise relationship, including those relating to renewal, termination, transfer and dispute resolution. Depending on the nature of the franchise system, Item 17 may be one of the shorter and less complex Items in the FDD.Item 17 is important for candidates to understand because it explains whether or not their agreement can be renewed or terminated, and what their rights and restrictions are if they have a disagreement with their franchisor. In this way, it acts as a summary of the terms of a brand’s&nbsp;<a href="https://1851franchise.com/10-must-ask-questions-about-franchise-agreements-2708306">franchise agreement</a>. The section will provide franchisees with all the information that they need in regard to non-compete obligations and renewal rights, ensuring they can map out the entire lifecycle of their business and make a plan that is right for them. Many franchisees invest in a business with the long-term goal of selling it in the future, and Item 17 will help them determine how well the concept lends itself to that plan.But even though Item 17 of the FDD is designed to give candidates a strong overview of what their rights are when it comes to renewing, selling or ending their franchise agreement, it’s not the be-all and end-all of information on the subject.&nbsp;In order to get a full picture of whether or not a brand’s Item 17 information is right for a candidate’s goals, they should also&nbsp;<a href="https://1851franchise.com/mainland/how-to-lead-prospects-to-great-validation-2717701">speak with franchisees</a> who have either renewed, transferred or ended their agreement with the brand. By gaining multiple perspectives on how the brand handles and settles disputes, candidates are better able to decide if they’re a good match or not.Although Item 17 is not as dense as other sections of the FDD, it is still full of legal jargon and can be difficult to decipher. Franchisee candidates should enlist the help of a franchise attorney to ensure they understand the obligations that will be required of them and the rights they will have as part of the franchise system. The last thing prospects want is to sign on the dotted line and then find themselves in a situation where they can not achieve their personal goals because of stipulations outlined in the franchise agreement.&nbsp;

Understanding Franchise Disclosure Document Item 17 | 1851 Franchise

1851 Franchise

Item 17, which breaks down renewal, termination, transfer and dispute resolution, serves as a cheat sheet to a franchisee’s entire agreement.

Franchise Disclosure Document: Item 17

franchise-disclosure-document-item-17

Crust Pizza Co.

Giving Back One Slice at a Time: Crust Pizza Co. Raises Over $100,000 for St. Jude Children’s Research Hospital 

giving-back-one-slice-at-a-time-crust-pizza-co-raises-over-100000-for-st-jude-childrens-research-hospital

Pool Scouts

Pool Scouts Franchise - Tiffiny Consoli - Entrepreneur Agg - 1851 Franchise

Entrepreneur: No Experience? No Problem. How This First-Time Franchisee Built a $3 Million Business

pool-scouts-franchise-tiffiny-consoli

Strategic Franchising

Photo of two customers, with two dogs, and an employee in a Pet Wants location

How Franchisees Are Building Local Impact and Creating Jobs in Their Communities

how-franchisees-are-building-local-impact-and-creating-jobs-in-their-communities

Woodhouse Spas

photo of Woodhouse Spa front desk with flowers, greenery, and pendant lights

Woodhouse Spas Opportunity: The Path To Successful Franchise Ownership

premium-wellness-franchise-woodhouse-spas

photo of woodhouse spas franchise owner standing, smiling, in the business

How This Woodhouse Spas Owner Achieved a Successful Opening

how-this-woodhouse-spas-owner-achieved-a-successful-opening

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Tariff Tensions Threaten U.S. Restaurants with Rising Costs and Supply Chain Disruptions

tariff-tensions-threaten-us-restaurants-with-rising-costs-and-supply-chain-disruptions

Roof Scientist Launches Franchise Opportunity, Revolutionizing Roof Preservation with Innovative Technology

roof-scientist-launches-franchise-opportunity-revolutionizing-roof-preservation-with-innovative-technology

Restaurant Business: How McDonald's Is Restructuring To Compete With Specialized Chains

restaurant-business-how-mcdonalds-is-restructuring-to-compete-with-specialized-chains

Design with hundred dollar bill and orange "recession" banner across the middle

ABC News: Recession Risks Are Rising, Economists Say. Here’s What to Know.

recession-risks-impact-economy-franchise-world

NRA: Restaurants Focus On Enhancing In-Store Experiences To Attract Diners in 2025

nra-restaurants-focus-on-enhancing-in-store-experiences-to-attract-diners-in-2025

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

Photo of a basket of chicken wings with dipping sauce and celery

RestaurantNews: Franchisees File Comprehensive Legal Complaint Against Hurricane AMT

restaurantnews-franchisees-file-comprehensive-legal-complaint-against-hurricane-amt

1851 Agg - McDonald's Sales Decline Expansion Continues - 1851 Franchise

McDonald’s Franchisees Feel the Pressure as Sales Decline and Expansion Continues

mcdonalds-franchisees-feel-the-pressure-as-sales-decline-and-expansion-continues

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

The Top Quick Service Restaurant Franchises for 2025

the-top-quick-service-restaurant-franchises

Top 25 Emerging Restaurant Franchises - 1851 Franchise

Top 25 Emerging Restaurant Concepts to Consider in 2025

top-emerging-restaurant-concepts-to-consider

How Car Sales Taught Buddy's Home Furnishings’ Mitchell Lee the Secrets of Franchise Development

how-car-sales-taught-buddys-home-furnishings-mitchell-lee-the-secrets-of-franchise-development

Franchise Disclosure Document: Item 17

MORE STORIES LIKE THIS