What is a franchise disclosure document?
Many states require a franchisor to register a disclosure document known as the Franchise Disclosure Document (FDD). To prevent arbitrary or bad faith terminations, state law may prohibit termination without "good cause" or require that certain procedures be followed in terminating a franchising relationship.
What is a franchisee?
Franchisee: One receiving a license to use another's (the franchisor's) trademark, trade name, or copyright in the sale of goods and services. Franchisor: One licensing another (the franchisee) to use his/her trademark, trade name, or copyright in the sales of goods and services.
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