The FDD franchise disclosure document is the newer and better version of the UFOD but it is just as important to the process of buying a franchise.

The FDD franchise disclosure document was introduced to the franchising world by the Federal Trade Commission who are the government big shots who say what goes and what doesn’t go in the franchising universe.  Despite the fact that the development of this important franchising document was done by the government, it is a nice step forward to bring the franchising process into the new century without too much discomfort.

During the process of buying a franchise, a number of franchise agreements fly back and forth between the franchisee and the franchisor. What the FDC is working hard to make a reality in making the FDD franchise disclosure document part of the process is that every detail of disclosure takes place between the two partners in a franchise before signatures are put on the final franchise agreements and money makes the trip from one bank account to another.

While the uniform franchise offering circular served a long and distinguished term keeping franchise transactions honest and above board, it was due for a facelift.  The FDD franchise disclosure document was that facelift. One of best improvements on the old fashioned system of franchise disclosure is that it cleared up the timing of when these documents had to be delivered to the franchisor for review.  By making sure all of the players knew the rules of the game, that made the tricky process of franchise purchase negotiation just a little less tricky.

Finally franchise disclosure information can be exchanged electronically and efficiently.

Whatever other criticisms we might have of the powers that be, in some sections of the government, there are some good things happening. How this important franchise disclosure document is managed is one of those improvements. When the UFOC became the FDD franchise disclosure document, one big improvement came in how it can be shared between franchisee and franchisor.

No longer is it absolutely essential that bulky packages have to crawl through the mail system and clutter up your mailbox.  Now the franchisee can deliver the FDD franchise disclosure document to you electronically. For most people, working with documents in digital form has become as natural as having a cup of coffee.  And now you can have this crucial franchise information on your computer screen instead of all over your living room floor. This gives you all of the tools of the computer age to review and manage it.

By getting the FDD franchise disclosure document in digital form, you can search it, cut and paste from it and even pass it along to your franchise advisors and lawyers easily and without cost.  The big shots in Washington even took their upgrade to the FDD franchise disclosure document one step further and made it possible to sign the document and make it official using electronic signatures.

Naturally some care must be taken to make sure the exchange of sensitive franchise information is kept between you and the franchisee.  But those protections are entirely possible in the world of cyberspace. It is worth taking those precautions to have the improvements that the FDD franchise disclosure document has brought to the franchising process and to the franchising world as well.