Franchise Glossary
Non-Disclosure Agreement (NDA)
What is Non-Disclosure Agreement (NDA) in franchising?
A confidentiality agreement sometimes signed before a franchisor shares detailed proprietary information, such as trade secrets, operations manuals, or supplier pricing, with a prospective franchisee. NDAs in the early stages of franchise exploration are routine. However, franchisors are not permitted to require an NDA before providing the FDD, and any attempt to do so would violate FTC franchise disclosure rules.