Item 1 of the franchise disclosure document introduces the franchisor and provides a comprehensive overview of the company offering the franchise. It discloses the franchisor’s business model, industry involvement, corporate relationships and any affiliated entities the prospect should be aware of.
Item 1 helps candidates understand who they are entering into a long term business relationship with.
Item 1 must disclose:
the franchisor’s legal name and business form
its business history and operations
parents, predecessors and affiliates
whether affiliates provide products, services or training
industries in which the franchisor operates
any relevant corporate background necessary to understand the offering
details on the competitive landscape
If affiliates sell territories, handle training or provide required products, those relationships must be explained clearly.
Item 1 builds the foundation for trust and transparency. It reveals:
system maturity
corporate structure
whether the business is emerging or established
the role of affiliates
operational experience relevant to the franchise system
State examiners often scrutinize Item 1 if affiliate functions are not clearly defined.
FDD Renewal
Material Change
Franchise Examiner
Franchise Exemption
Notice Filing State
Non Registration State
Registration Filing State
Stop Order
Franchise Registration Management
Franchise Territory Mapping
Demographic Analysis
Integrated Document Signing
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Last updated: November 26, 2025
