Definition:
Item 18 shows whether any public figure supports, manages, or promotes the franchise brand, including celebrities or well-known personalities.
Use It in a Sentence:
Before buying a franchise, Alex checked Item 18 of the FDD to see if any famous person was involved with the brand.
Why Are Item 18 Details Important?
Public figures can bring attention to a brand. But that doesn’t always mean they run the business or know how it works. Item 18 tells you if someone famous is connected to the franchise—and in what way. Maybe they invest in the company, appear in ads, or help with sales. This section explains if they’re getting paid and what they actually do for the brand.
For example, if CoolVu had a celebrity spokesperson for its window films or wall graphics, you’d see that here. But more importantly, Item 18 shows if their role is just promotional or if they actually have a say in how the business runs.
This helps potential franchisees like you avoid confusion. You’ll know who’s truly behind the brand and who’s just lending a face to it. And if no public figures are involved at all, this item will say so.
In short, this section keeps things clear and honest. You won’t be swayed by a famous name unless you know exactly how they’re connected to the CoolVu franchise.
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 17 in FDD: Renewal, transfer, & ending agreements rules.
- 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.
