Franchise Disclosure Documents

Franchise Disclosure Document (FDD) Review

Legal Due Diligence for Franchisees: Lakewood to Atlantic City

The Franchise Disclosure Document (FDD) is the most important document you will receive before starting your business. Required by the Federal Trade Commission (FTC), this 23-item document contains the “DNA” of the franchise system—covering everything from the franchisor’s litigation history to the hidden fees you’ll owe long after the grand opening.

At Riviere Advocacy Group, we provide comprehensive FDD audits for entrepreneurs across Ocean and Atlantic Counties, including Lakewood, Toms River, Brick, Egg Harbor Township, Atlantic City, and Galloway. We don’t just read the FDD; we translate it into a clear risk assessment for your investment.

What We Uncover in Your FDD Audit

Our attorneys deep-dive into the 23 mandatory items, with a specific focus on:

  • Item 3 & 4 (Litigation & Bankruptcy): We investigate the franchisor’s track record to ensure you aren’t joining a sinking ship or a system plagued by franchisee lawsuits.

  • Item 7 (Initial Investment): We verify if the “estimated costs” are realistic for the Jersey Shore market, helping you avoid capital shortfalls.

  • Item 19 (Financial Performance): If the franchisor makes earnings claims, we audit the data to ensure the numbers are substantiated and not misleading.

  • Item 20 (Outlets & Franchisee Information): We analyze the “churn rate”—how many franchises have closed or been reacquired—to judge the health of the system.

Protecting Your Interests in New Jersey

While the FTC sets the baseline, the New Jersey Franchise Practices Act provides additional layers of protection for local business owners. We ensure your Franchise Agreement is compliant with state law and that your territorial rights in cities like Toms River or Atlantic City are clearly defined and defended.

Talk to our FDD review attorneys today before your 14-day disclosure window closes.