Franchise Glossary
FDD Item 5
What is FDD Item 5 in franchising?
The section of the Franchise Disclosure Document that lists all initial fees paid to the franchisor, primarily the franchise fee. Item 5 also discloses whether fees are uniform across all buyers or whether they vary, and under what conditions. Some brands offer reduced franchise fees for veterans, multi-unit buyers, or early-signing incentives. Those conditions are documented here.