Effective: May 2026
Under the U.S. Federal Trade Commission's Franchise Rule (16 C.F.R. Part 436), franchisors are required to provide prospective franchisees with a Franchise Disclosure Document (FDD) at least 14 calendar days before the prospective franchisee signs any binding agreement or makes any payment to the franchisor or its affiliate. The FDD contains 23 specific items of disclosure, including the franchisor's audited financial statements, litigation history, franchisee obligations, and territory restrictions.
In addition to the federal FTC Franchise Rule, certain U.S. states impose additional franchise registration and disclosure requirements. States including California, Illinois, Maryland, Minnesota, New York, Virginia, Washington, and others may require franchisors to register their FDD with a state regulatory agency before offering or selling franchises within their borders. Some states impose longer waiting periods or additional disclosure obligations beyond the federal minimum.
Kariant is not a franchisor and does not prepare, file, distribute, or provide Franchise Disclosure Documents. If you are interested in a franchise opportunity listed on Kariant, you must contact the franchisor directly to request the FDD. You should not sign any franchise agreement or make any payment to a franchisor until you have received, read, and had the FDD reviewed by an independent attorney experienced in franchise law.
You have the right to receive the FDD at no cost from the franchisor. You have the right to take at least 14 days (or longer if required by state law) to review the FDD before making any commitment. You are strongly advised to seek independent legal and financial counsel before entering into any franchise relationship.
For questions about franchise disclosure requirements, contact legal@kariant.app.