Definition:
Item 15 in a Franchise Disclosure Document (FDD) explains whether a franchisee must personally run the business or hire someone else to do it.
Use It in a Sentence:
When Chris bought his franchise, he learned from Item 15 of the FDD that he could hire a manager instead of running it himself.
Why Is Item 15 Important?
Not every franchisee wants to run the day-to-day business. Some prefer to invest and hire a manager. Item 15 clearly states whether the franchisee can delegate or must be hands-on.
For example, some brands want owners to be directly involved to keep quality and service consistent. Others may allow absentee ownership. This section tells you upfront what’s expected. It helps you decide if the franchise fits your lifestyle, schedule, and goals.
If you plan to stay involved, no problem, you’ll already be meeting the requirement. But if you’d rather build a team and delegate, this is where you’ll find out if that’s okay. Either way, it’s important to know your role before you sign.
CoolVu wants its franchisees to succeed. Knowing ownership requirements builds stronger operations from day one.
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 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.
