Definition:
Item 1 in a Franchise Disclosure Document (FDD) gives a clear snapshot of the franchisor’s background. It lists the legal name, business address, and contact details of the company. It also covers any parent companies, former businesses (predecessors), or related companies (affiliates). These details show how the business is structured and who’s behind the franchise.
Use It in a Sentence:
Before signing with CoolVu, Alex read Item 1 in the FDD to learn more about the company’s background.
Why Is Item 1 Important?
Item 1 tells you who you’re doing business with. It’s the starting point in any franchise journey. It helps you understand who owns the franchise and how long they’ve been in business. You’ll also learn about any related companies and what names they go by.
This matters if you’re looking into a franchise like CoolVu, where trust in the brand is key. You want to know how long CoolVu has been around, if it’s connected to other companies, and where it’s based. That’s what Item 1 tells you—no guesswork, just facts.
Knowing the franchisor’s background gives you confidence. It lets you decide if the company is stable and has the experience to support you. And since CoolVu deals with innovative products like custom wall graphics and window films, it’s helpful to know the experts behind the name.
Related FDD Dictionary Terms:
- Franchise Disclosure Document (FDD) – Legal summary.
- 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 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.
