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Who does the work?

Item 15 of the Franchise Disclosure Document (FDD) addresses participation in operating the franchise. Read it with Item 11 assistance/training, Item 12 territory and the actual agreement. Training does not, by itself, tell you who must be present, win customers or handle exceptions.

If the reference owners sell or supervise personally, identify and cost the work your proposed manager or parent support would replace. A manager-run sales description needs support in the offering and contractual duties.

Sources: Federal Trade Commission: pp. 2–4, 16, 113–115

What do the reported figures describe?

For any Item 19 financial performance representation, check the defined group, period, outlet age, service mix, owner involvement and exclusions. Read the relevant Item 20 outlet information and contacts too. Mature-outlet revenue does not establish a new unit’s profit after manager and other costs.

The evidence may be useful for one established operation yet insufficient for your start-up forecast or a statement to prospective partners. Keep that limit rather than filling missing costs with an industry assumption.

Sources: Federal Trade Commission: pp. 2–4, 16, 113–115 Federal Trade Commission: section-436.1

Use the actual version and the whole offering

Identify the seller, issue/amendment dates, state addenda and item/page before mixing figures. Items 5–8 address fees, other costs and supply restrictions; Item 17 addresses renewal/exit/disputes; Item 21 seller financial statements answer a different question from outlet results. These selected subjects do not replace all 23 items and transaction documents.

The May 2008 FTC Compliance Guide explains the subjects; it is not an endorsement or a current threshold sheet. Check any software extraction against the document before relying on it.

Sources: Federal Trade Commission: pp. 2–4, 16, 113–115

Scope

  • No automated FDD extraction is verified by this page. A comparison or internal budget is not a permitted earnings claim, approved operating model or profit forecast.

Next step

Compare the actual owner duties and reported outlet group with the paid work and costs in your proposed manager-run model.

Sources & review notes

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

FTC Franchise Rule Compliance Guide

Federal Trade Commission

Passage, dates and research notes

official-guidance · pp. 2–4, 16, 113–115

overall method of operation

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Published May 2008 (day not asserted). Read relevant full-PDF sections. Dated guidance contains obsolete monetary thresholds and dated accounting discussion: current CFR controls; auditor must verify current SEC-permitted treatment.

16 CFR §436.1: Federal franchise definition

Federal Trade Commission

Passage, dates and research notes

primary · section-436.1

whatever it may be called

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.

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The case guides distinguish allegations, orders and outcomes.

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