Franchise Glossary
Cooling-Off Period
What is Cooling-Off Period in franchising?
The FTC-mandated 14 calendar days during which you must have the FDD in your hands before you can sign a franchise agreement or pay any fees. This legal protection exists to ensure you have adequate time to read the disclosure document, consult with a franchise attorney and accountant, conduct validation calls with existing franchisees, and make an informed decision. If a franchisor pressures you to sign before this period expires, that is a serious red flag and a potential violation of federal law.