Definition:
Explains the rules for renewing, ending, or transferring a franchise agreement, including timelines, approvals, fees, and how legal disputes are handled between the franchisee and franchisor.
Use It in a Sentence:
Before opening her franchise, Emily read Item 17 of the FDD to understand how to renew or transfer her agreement later.
Why Are Item 17 Details Important?
Item 17 of the FDD explains what happens if you want to renew, end, or transfer your franchise agreement. It also covers how disputes get handled. These are things you don’t want to figure out too late.
Let’s say you’ve built a strong business selling window films and custom wall graphics. If your agreement is ending soon, Item 17 tells you how to renew without losing what you’ve built. It shows you the steps, fees, and timing required to keep your business going.
Or maybe you’re ready to move on and want to sell your franchise. This section explains what’s allowed, what’s not, and who approves the transfer. It also outlines why the franchise may end the agreement, keeping you informed.
If a disagreement happens between you and the franchise, you’ll also find details here about how those disputes will be settled—whether that’s through mediation, arbitration, or court.
Knowing this part of the FDD gives you peace of mind. It helps you plan ahead, whether you’re just starting or thinking long-term.
Related Dictionary Terms:
- Franchise Disclosure Document (FDD) – Legal summary.
- Item 1 in FDD: Identifies ownership, location, and business ties.
- Item 2 in FDD: Shows leadership experience behind the brand.
- Item 3 in FDD: Lists legal history and potential risks.
- Item 4 in FDD: Discloses past bankruptcies for review.
- Item 5 in FDD: Upfront startup fees listed.
- Item 6 in FDD: Lists ongoing fees for operating the franchise.
- Item 7 in FDD: Outlines estimated startup and operating costs.
- Item 8 in FDD: Lists supplier rules and product standards.
- Item 9 in FDD: Lists franchisee duties and responsibilities.
- Item 10 in FDD: Explains franchisor financing and loan options.
- Item 11 in FDD: Lists franchisor training, tools, and support.
- Item 12 in FDD: Explains territory rights and restrictions.
- Item 13 in FDD: Lists trademarks and legal protections.
- Item 14 in FDD: Covers patents, copyrights, proprietary info.
- Item 15 in FDD: Explains owner’s operational role.
- Item 16 in FDD: Lists what franchisees can sell.
- Item 18 in FDD: Shows public figures’ roles and ties.
- Item 19 in FDD: Shows sales numbers and earnings data.
- Item 20 in FDD: Tracks openings, closings, and transfers.
- Item 21 in FDD: Shows audited financial statements.
- Item 22 in FDD: Lists all required franchise contracts.
- Item 23 in FDD: Confirms receipt and starts 14-day wait.
