1851

Before deciding to enter a franchise agreement with a brand, perhaps the most important thing a prospective franchisee can do is fully review all 23 Items of the Franchise Disclosure Document (FDD). For both&nbsp;<a href="https://1851franchise.com/how-to-read-a-franchise-disclosure-document-2714764#stories">experienced franchisees and first-time candidates,</a> the FDD is a critical document to read in its entirety, as it provides the brand’s prospective buyers with a detailed analysis of the business ownership opportunity they are considering. After fully understanding Items 1–4 and 5–7 and these sections’ respective topics of the franchisors’ history and the cost breakdown, the potential franchisee must thoroughly understand Item 11: Franchisor Obligations.<a href="https://1851franchise.com/what-is-an-fdd-2705192#stories">In Item 11</a>, the FDD breaks down the assistance and support the brand provides its franchisees — both at the beginning for a successful start and in the long term. This assistance and support range from information on training, advertising, software and advertising support, and opening assistance.Specifically,&nbsp;<a href="https://franchise.law/franchise-disclosure-document/item-11/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=understanding-item-11-of-the-franchise-disclosure-document-2720370#:~:text=Item%2011%20of%20the%20Franchise%20Disclosure%20Document%20(FDD)%20provides%20an,this%20section%20completely%20and%20accurately." target="_blank" rel="nofollow">Franchise Law</a> states that under Item 11, franchisors must first disclose their obligations, as set forth in the franchise agreement, to furnish assistance to franchisees. These obligations to furnish assistance include pre-opening obligations, post-opening obligations, and a disclosure stating the typical length of time it takes to open a franchise.&nbsp;Some of the many things a franchisee can rely on the franchisor to handle during the start-up process are:&nbsp;<ul><li>Locating a site and negotiating the purchase or lease of the site</li><li>Conforming the premises to local ordinances and building codes and obtaining any required permits</li><li>Constructing, remodeling or decorating the premises</li><li>Hiring and training employees</li><li>Providing for necessary equipment, signs, fixtures, opening inventory and supplies.&nbsp;</li></ul>If the franchisor is the party responsible for locating and negotiating the purchase or lease of the franchisee’s site, then the FTC Rule requires that the franchisor disclose whether the franchisor generally owns the premises and leases it to the franchisee; whether the franchisor selects the site or approves an area in which the franchisee selects a site, and if so; how the franchisor approves a franchisee-selected site; the factors that the franchisor considers in selecting or approving sites; the time limit for the franchisor to locate or approve or disapprove the site; and the consequences if the franchisor and franchisee cannot agree on a site.Prospective franchisees should bear in mind that the Federal Trade Commission (FTC) only requires a franchisor to disclose obligations under the relevant franchise agreement to assist franchisees and help with advertising, computer systems, training and operating manuals. A prospective franchisee will need to ask questions about what type of support they will receive during opening and the long term, as brands are not specifically obligated to provide this information under the franchise agreement or Item 11. In fact, at the top of Item 11, the&nbsp;<a href="https://www.ftc.gov/legal-library/browse/rules/franchise-rule?utm_source=1851franchise.com&utm_medium=article&utm_campaign=understanding-item-11-of-the-franchise-disclosure-document-2720370" target="_blank" rel="nofollow">FTC Rule</a> requires franchisors to provide the following statement in bold type:&nbsp;<a href="https://franchise.law/franchise-disclosure-document/item-11/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=understanding-item-11-of-the-franchise-disclosure-document-2720370#:~:text=Item%2011%20of%20the%20Franchise%20Disclosure%20Document%20(FDD)%20provides%20an,this%20section%20completely%20and%20accurately." target="_blank" rel="nofollow">“Except as listed below, [the franchisor] is not required to provide you with any assistance.”</a>&nbsp;While a franchisor’s Item 11 is incredibly helpful for understanding the type of support and resources available, it is important that a potential franchisee understand when that support is taking place and when — and if perhaps anything is being omitted per the FTC Rule. By fully understanding how brands write Item 11 and what is included in this Item, potential franchisees can better understand if the brand is a good fit for them.&nbsp;

Understanding Item 11 of the Franchise Disclosure Document

1851 Franchise

This section of the FDD contains useful information regarding the assistance and support the franchisor provides its franchisees.

understanding-item-11-of-the-franchise-disclosure-document

HomeTeam Inspection Service

Hometown News: Like Father, Like Son — Family-Run Inspection Business Blends Generations of Expertise and a Keen Eye for Detail

father-son-home-inspection-franchise-florida

KLA Schools

KLA Schools of Beachwalk Hosts Admissions Kick-Off Celebration

kla-schools-of-beachwalk-hosts-admissions-kick-off-celebration

Good Day Columbus: Home Insurance Expert Reveals Why Central Ohio Premiums Are Rising and How to Combat Costs

rising-home-insurance-costs-ohio

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

Children's Lighthouse

How Children’s Lighthouse Franchisees Scale to Multiple Locations

how-childrens-lighthouse-franchisees-scale-to-multiple-locations

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 Development Website Builder

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

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

graphic image of an 1851 franchisee spotlight brayden and johnny steven of teriyaki madness

Father-and-Daughter Team Bring Teriyaki Madness to Wichita, Kansas, With Big Expansion Plans

johnny-brayden-steven-teriyaki-madness-wichita

Young Entrepreneur Parth Patel Is Bringing Paris Baguette to the Cleveland Area

young-entrepreneur-parth-patel-is-bringing-paris-baguette-to-the-cleveland-area

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Understanding Item 11 of the Franchise Disclosure Document

MORE STORIES LIKE THIS