Website FDD Audit: Comparing Your Franchise Development Website to the Franchise Disclosure Document (FDD)

Purpose of the FDD Consistency Review

A critical component of the Website Audit is the comparison of your franchise development website against your Franchise Disclosure Document (FDD). This review ensures that all publicly facing franchise marketing content aligns with the authoritative, legally required disclosures provided to prospective franchisees.

The audit is designed to answer one essential compliance question:

Does the information presented on the franchise development website accurately and consistently reflect what is disclosed in the FDD?

Regulatory Context and Compliance Standards

Under the Federal Trade Commission (FTC) Franchise Rule (16 CFR Part 436), franchisors are required to ensure that all franchise marketing materials—including websites—do not contain:

• Material misrepresentations

• Omissions of required information

• Statements that conflict with the FDD

The FDD is the single source of truth for franchise disclosures. Any inconsistency between website content and the FDD may expose the franchisor to:

• FTC enforcement actions

• Civil penalties

• Franchisee lawsuits based on reliance

• Reputational damage and loss of investor trust

The Website Audit evaluates website content through this regulatory lens.

How the Comparison Is Performed

The audit conducts a side-by-side analysis of franchise development website content against the most current FDD (e.g., 2025 FDD), reviewing claims, ranges, descriptions, and representations for alignment.

Each identified discrepancy is assessed for:

• Materiality – Whether the inconsistency could influence a franchisee’s decision

• Risk Level – Likelihood of regulatory or legal exposure

• Remediation Priority – Urgency based on risk and visibility

This process ensures compliance while supporting clear, accurate franchise marketing.

Key Categories Reviewed for Consistency

The audit focuses on high-risk disclosure areas where inconsistencies are most likely to result in enforcement or litigation:

Initial Investment Ranges

• Comparison of website-stated investment ranges with Item 7 of the FDD

• Identification of omissions, outdated figures, or overly simplified claims

Franchise Fees

• Verification that franchise fee amounts and structures match Item 5 disclosures

• Review of any promotional language that may imply discounts or alternatives

Liquid Capital and Financial Requirements

• Alignment between stated capital requirements and FDD disclosures

• Identification of implied affordability or understatement of requirements

Financial Performance Representations (FPRs)

• Confirmation that any earnings, revenue, or performance claims are permitted under Item 19

• Detection of implied financial outcomes not supported by the FDD

Territorial Protections

• Comparison of exclusivity or territory language with Item 12

• Identification of overstatements or misleading assurances

Marketing and Advertising Fund Contributions

• Alignment of stated marketing fees and fund usage with Item 11

• Review of implied benefits or commitments beyond disclosed terms

Risk Evaluation and Prioritization

Each inconsistency identified is evaluated based on:

• Potential regulatory enforcement risk

• Exposure to franchisee reliance claims

• Visibility to prospective franchisees

• Likelihood of misinterpretation

This allows the audit to distinguish between:

• Critical compliance issues requiring immediate correction

• Moderate-risk inconsistencies requiring planned remediation

• Low-risk language refinements

What This Review Is—and Is Not

This review is:

• A compliance-focused content alignment analysis

• Grounded in FTC Franchise Rule requirements

• Designed to reduce legal and reputational risk

This review is not:

• Legal advice or a substitute for franchise counsel

• A rewrite of the FDD

• An evaluation of internal operations or performance

Why This Matters for Franchise Development

Prospective franchisees rely heavily on franchise development websites during early-stage evaluation. When website messaging conflicts with the FDD:

• Trust erodes quickly

• Deals stall or collapse during disclosure

• Legal exposure increases significantly

Aligning website content with the FDD ensures:

• Accurate expectations are set early

• Franchise prospects self-qualify appropriately

• Confidence is built before formal disclosure

• Compliance risk is reduced

Key Takeaway

The Website Audit’s FDD consistency review ensures your franchise development website reinforces your legal disclosures. By identifying and prioritizing inconsistencies between website content and the FDD, the audit protects your brand, reduces regulatory risk, and supports transparent, compliant franchise growth.