Item 2: Business Experience

Disclosure of the franchisor’s executives and their professional experience relevant to managing and supporting the franchise system.

What is Item 2

Item 2 of the Franchise Disclosure Document (FDD) lists the key individuals who manage the franchise system and describes their business experience for the past five years. This includes their names, positions and relevant background.


Why Item 2 Matters

Item 2 helps prospects evaluate:

  • leadership stability

  • industry experience

  • credibility of the support team

  • operational expertise

Strong Item 2 disclosures can strengthen franchisee confidence.


What Item 2 Must Include

Item 2 must list:

  • officers

  • directors

  • executives involved in franchise sales, training or support

  • everyone with management responsibility over sales or operations

Each individual must have a five year employment history disclosed, and must be included regardless of their title or direct employer.


Related Terms

FDD Renewal
Material Change
Franchise Examiner
Franchise Exemption
Notice Filing State
Non Registration State
Registration Filing State
Stop Order


Related Features

Franchise Registration Management 
Franchise Territory Mapping
Demographic Analysis
Integrated Document Signing
CRM Tools


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Last updated: November 26, 2025