Staying on Top of FDD Requirements for Risk and Insurance

3 Min Read By Kimberly Gore, Sean Clements

It’s hard to escape the continuing boom in restaurant franchises. Quick-serve brands are leading the trend, and not just for restaurants, but for franchises overall. 

But it’s not just newbies to franchising – or restaurant franchises themselves, for that matter – that need to stay on top of the management intricacies that characterize the business. The pressures extend beyond balancing higher costs in an inflationary environment or the never-ending challenge of finding, training and keeping good staff. 

Even experienced operators know that navigating the compliance requirements laid out by each state’s franchise registration rules isn’t easy. Just as challenging is keeping on top of federally mandated franchise disclosures contained in the Franchise Disclosure Documents (FDD). 

Either way, both franchisors and franchisees alike need to be aware of the nuances that can be unclear, especially in the FDD, which is a complex document. What may be overlooked within it are…