Franchise

Franchise Disclosure Document

Also called: FDD, Franchise Disclosure

A document a franchisor must give a prospective franchisee before signing or taking money, in provinces with franchise legislation.

Varies by jurisdiction. Only some provinces — including Ontario, Alberta, British Columbia, Manitoba, New Brunswick and Prince Edward Island — have franchise disclosure legislation.

Franchise statutes require disclosure of specified information a set number of days before an agreement is signed or payment made. Deficient or late disclosure can give the franchisee a statutory right to rescind, sometimes long after signing.

Why it matters: the rescission remedy can be substantial, so disclosure timing is one of the highest-risk aspects of Canadian franchising.

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Legal information, not legal advice. Rules differ by province and change over time. A licensed lawyer must review your matter.

Editorial status: Lawkin Editorial — pending independent legal review.

Franchise Disclosure Document — Canadian legal glossary | Lawkin — Lawkin