Definition:
Item 22 in the FDD lists every contract a franchisee will need to sign. This includes the Franchise Agreement, and any other legal papers tied to owning and running the business.
Use It in a Sentence:
Before moving forward with the franchise, Mia carefully reviewed Item 22 in the Franchise Disclosure Document to see all the contracts involved.
Why Are Item 22 Details Important?
When you buy a franchise, you’re not just getting a brand, you’re signing legal agreements. Item 22 gives you a full view of every contract you’ll be expected to sign. That includes the main franchise agreement and sometimes things like property leases, financing documents, or even personal guarantees.
This section makes sure there are no surprises. You’ll see everything in writing before you sign anything. And that’s key. These documents outline what you can and can’t do, how long the deal lasts, and what happens if things don’t go as planned.
Knowing what’s in Item 22 helps you understand exactly what you’re agreeing to. It also gives your attorney a chance to look everything over and explain it to you. That way, you can move forward with clarity and confidence.
If you’re considering a CoolVu franchise, with its custom wall graphics, window films, and surfaces, this is your chance to read the fine print. You’ll understand your responsibilities before making any big moves.
In short, Item 22 lays it all out. It protects both you and the franchisor by keeping everything clear and official.
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 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 23 in FDD: Confirms receipt and starts 14-day wait.
