Franchise Disclosure Document Database: Where to Find Any FDD for Free

Is there a free franchise disclosure document database?

There is no single national database. The Federal Trade Commission enforces the FTC Franchise Rule but does not collect, register or approve FDDs, so there is nothing to search at the federal level. Instead, a group of states require franchisors to register or file their FDDs before selling there, and some of those states publish the filings online for free.

The four free state databases most buyers use are California, Wisconsin, Minnesota and Indiana. Between them they cover a large share of franchise brands, because franchisors that sell nationally often register in these states.

How do you search the California, Wisconsin, Minnesota and Indiana databases?

California's Department of Financial Protection and Innovation handles franchise filings through DocQNet. Search by the franchisor's legal name, which is often different from the brand name, and look for registration applications and renewals, which contain the FDD.

Wisconsin's Department of Financial Institutions franchise search is often the easiest to use. You can usually search by brand name, open the filing details and download the current disclosure document. Try variant spellings, numbers written as words and the legal entity name if the brand does not appear.

Minnesota's Department of Commerce publishes franchise registration documents through its CARDS search. Select franchise registrations as the area of interest, then search by franchisor name and choose initial registrations or renewals.

Indiana's Secretary of State portal lets you select franchise filings, enter the franchisor's legal name and a date range. Its online records cover recent years rather than the full history.

• Find the franchisor’s legal entity name in Item 1 of any FDD or on its website footer
• Search more than one state; filing dates differ, so one state may have a newer version
• Download several years to compare fees, outlet counts and terms over time

Are franchise disclosure documents public record, and which states hold them?

In states that require registration or filing, FDDs submitted to the regulator are generally public records, subject to each state's public records law and any confidential treatment it allows. That is why several states can publish them online. In states with no registration law, the franchisor never files the FDD with the state, so there is no public copy to obtain.

Federal Freedom of Information Act requests do not help here, because FOIA only reaches federal agencies and the FTC does not hold FDDs. If a brand is registered in a state whose database is not online, you can make a request under that state's public records law to its franchise regulator. Expect a processing period and possibly a copying fee.

The states with franchise registration or filing laws are commonly listed as California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin. In these states the franchisor files its FDD, or a notice, with a state regulator before offering franchises there, and some regulators examine the filing before it becomes effective.

Only some of these states publish filings in a free online franchise disclosure document database. For the others, the filing still exists and can usually be requested under the state's public records law. If a brand sells across the country, check whether it is registered in one of the four states with free online search first; that is usually the fastest route.

Why can you not find a franchise in the database?

A missing FDD does not mean the franchisor is doing something wrong. The common reasons are simple.

• The franchisor does not sell in that state and has not registered there
• You searched the brand name instead of the legal entity name
• The franchisor qualifies for a state exemption, for example one for large, experienced franchisors, and files only a notice
• The registration lapsed or is pending renewal, so only an older version is available
• The business is sold as a license or dealership and does not treat itself as a franchise

How do you compare FDDs across franchise brands?

Once you can download FDDs freely, compare two or three competing brands in the same category. Line up the same Items side by side: the initial fee and royalty in Items 5 and 6, the estimated initial investment range in Item 7, territory rights in Item 12, earnings data in Item 19 and outlet turnover in Item 20. Differences that look small in percentages can add up to large sums over a ten-year term.

Use the same period for every brand. FDDs are usually issued once a year, so compare documents issued within a few months of each other, and note the fiscal year each Item 20 table covers. Otherwise you may be comparing one brand's pre-expansion numbers with another's most recent results.

Look beyond fees too. A brand with a slightly higher royalty but a protected territory, lower turnover and a stronger franchisor balance sheet may be the better deal. Keep notes in a single table so the comparison is consistent, and bring it to your franchise lawyer and your accountant.

How do you get the current FDD from the franchisor?

Ask. Under the FTC Franchise Rule, 16 CFR 436.2, the franchisor must give you its current FDD at least 14 calendar days before you sign a binding agreement or pay any money, and under 16 CFR 436.9(e) it may not refuse a reasonable request for a copy earlier in the sales process. Many franchisors deliver it electronically once you complete an inquiry form. Check that the version you receive includes every exhibit listed on the Item 23 receipt, especially the franchise agreement, the state addenda and the financial statements; an incomplete package is worth questioning before the waiting period starts to run.

A database copy is useful for research, but the version the franchisor delivers to you is the one that counts for your purchase. Sign and keep the Item 23 receipt, because the date on it starts the 14-day waiting period.

What about paid FDD archives?

Commercial services collect FDDs from state filings and other sources into searchable archives, with older versions and data extracted from Items such as 19 and 20. FRANdata, for example, sells FDDs and franchise data. Some websites offer limited free access after you sign up.

Third-party franchise listing websites and broker sites are a different thing. They usually show marketing summaries, investment ranges and lead forms rather than the FDD itself, and the figures they show may be out of date or rounded. Treat them as a starting list of brands, not as a substitute for the disclosure document.

Paid archives are worth it if you need many years of history quickly, or you are comparing a dozen brands. For a single purchase decision, the free state databases plus the copy from the franchisor are usually enough. Whatever the source, check the issuance date on the cover page so you know which version you are reading.

How should you use older FDDs?

Older FDDs are a due diligence tool most buyers ignore. Lining up three to five years of a brand's disclosure documents shows trends that a single FDD hides. A franchisor with steady growth and falling closures tells a different story from one whose unit count rose only because it sold many new territories while older units quietly closed or changed hands. Older documents also let you check whether the franchisor's answers to your questions match what it disclosed in earlier years.

• Item 20: are closures, terminations and transfers rising or falling over time?
• Items 5 and 6: have fees crept up, or have new technology or brand fund fees appeared?
• Item 19: did the franchisor stop publishing earnings data, or change which units it includes?
• Item 3: has litigation with franchisees increased?
• Item 21: is the franchisor’s own financial position strengthening or weakening?

What should you do once you have the FDD?

Read it in order of risk: Item 20, then Item 19, then the fees and the franchise agreement attached as an exhibit. Our guide on how to read an FDD walks through all 23 Items, and the franchise agreement vs FDD guide explains which document controls your rights.

Then call franchisees. Item 20 lists current owners and those who left in the last fiscal year, and a list of franchisee validation questions keeps those calls focused. ClauseAudit's automated franchise review reads the full FDD, calculates Item 20 closure and transfer rates, flags a missing Item 19, totals the fees over the term at your own sales estimate, and gives you questions for the franchisor and franchisees.