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The FDD and franchise agreement are vital documents in the franchise industry. The FDD is a pre-sales disclosure document that informs potential buyers about the franchise opportunity. On the other hand, the franchise agreement establishes the legal relationship between the franchisor and franchisee. The FDD is required by federal law, and franchisors must provide it to potential buyers before they sign a franchise agreement or pay any fees. The FDD should also include a copy of the franchise agreement.
