Franchise Disclosure Document

Draft FTC-Compliant FDDs in Minutes, Not Hours

15 minutes with CaseMark

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15 minutes with CaseMark

What you'll need

Franchise Agreement Suite
Corporate Profile & Officer Information
Audited Financial Statements

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

CaseMark's Franchise Disclosure Document skill automates the drafting of complete, FTC Franchise Rule–compliant FDDs including all 23 required items, financial tables, outlet rosters, exhibits, receipt pages, and state-specific addenda. It transforms weeks of manual document assembly into a streamlined AI-powered workflow that ensures nothing is missed.

Preparing a Franchise Disclosure Document is one of the most document-intensive tasks in franchise law. Attorneys must manually compile and cross-reference corporate records, financial statements, litigation histories, outlet data, and fee schedules across 23 separate disclosure items—each with precise FTC and state-level formatting requirements. A single omission can delay registration or trigger regulatory action.

CaseMark automates the entire FDD drafting process by ingesting your franchise agreement suite, corporate documents, and operations data, then producing a complete, properly structured disclosure document. The AI performs a comprehensive gap analysis before drafting, ensuring every required disclosure is addressed and flagging items that need attorney verification—so your team can focus on substantive legal judgment rather than document assembly.

How it works

1. Upload your franchise agreement suite, corporate documents, financials, and operations data
2. AI performs gap analysis and extracts key facts across all 23 disclosure items
3. Review the fully drafted FDD with Items 1–23, tables, exhibits, and state addenda
4. Export the filing-ready document in your preferred format (DOCX, PDF)

What you get

Gap Analysis Log
FTC Cover Page & Front Matter
Items 1–23 Disclosure Sections
Required Tables (Fees, Outlets, Financial Performance)
State Addenda & Registration Materials
Exhibits & Receipt Pages

What it handles

Complete Items 1–23 drafted per FTC Franchise Rule (16 C.F.R. Part 436)
Automated state addenda and registration package generation
Required financial tables, outlet rosters, and fee schedules
Gap analysis identifying missing disclosures and source documents
FTC-mandated cover page and cautionary statements included verbatim
Receipt pages and exhibit compilation for filing-ready output

Required documents

Franchise Agreement Suite
Current forms of all franchise agreements, area development agreements, and related contracts to be disclosed and attached as exhibits
.pdf, .docx
Corporate Profile & Officer Information
Entity formation documents, ownership structure, affiliate details, and officer/director biographical information covering the past five years
.pdf, .docx
Audited Financial Statements
Up to three years of audited financial statements and the independent auditor's report as required by the FTC Franchise Rule
.pdf, .docx

Supporting documents

Litigation & Bankruptcy History
Records of litigation and bankruptcy proceedings for the franchisor, affiliates, and Item 2 persons over the past ten years
.pdf, .docx
Outlet Roster & Franchisee Contact List
Current and former franchisee lists with contact information, and outlet opening/closing data for the past three fiscal years by state
.pdf, .docx, .xlsx
Prior Year FDD
Previous year's Franchise Disclosure Document to facilitate annual updates and ensure consistency
.pdf, .docx
State Registration Requirements
List of target offering states and any state-specific registration or exemption documentation
.pdf, .docx

Why teams use it

Reduce FDD drafting time from weeks to hours with automated extraction and assembly across all 23 items

Minimize compliance risk with built-in gap analysis that flags missing disclosures before filing

Generate state addenda and registration materials for multiple jurisdictions simultaneously

Maintain consistency across annual FDD updates with structured data extraction from prior filings

Questions

Does the AI produce all 23 FDD items required by the FTC Franchise Rule?

Yes. CaseMark drafts every item from Item 1 (Franchisor Identity) through Item 23 (Receipts), including required tables for fees, outlet data, and financial performance representations. Each item follows the format and content requirements of 16 C.F.R. Part 436.

How does CaseMark handle state-specific franchise registration requirements?

CaseMark generates state addenda and state-specific cover pages for all registration and filing states you designate. The AI flags state-specific disclosure variations so you can ensure compliance with each jurisdiction's franchise laws.

Can I include or exclude an Item 19 financial performance representation?

Absolutely. CaseMark supports both affirmative Item 19 disclosures with the required bases and assumptions, and negative disclosures stating that no financial performance representation is made. You control which approach to take.

What financial documents do I need to provide?

CaseMark requires up to three years of audited financial statements and the auditor's report, as mandated by the FTC Rule. The AI integrates these into the FDD and flags any gaps in the required financial history.

How does the gap analysis work?

Before drafting, CaseMark scans all uploaded documents and maps extracted facts against every FDD disclosure requirement. It produces a detailed gap log identifying missing information, unverified claims, and items requiring attorney review.

Is the output ready to file with state regulators?

CaseMark produces a filing-ready draft with proper formatting, required cautionary language, and state addenda. However, all FDD filings should be reviewed by qualified franchise counsel before submission to regulators, as CaseMark is a drafting tool, not a substitute for legal advice.