As mandated by the Federal Trade Commission (FTC), franchisors must disclose potential franchisees and all affiliated partners. It sounds official because it is. This is the first step in a prospect’s due diligence and sets the stage for the business relationship between the franchisor and franchisee. When a franchise candidate is given the FDD, they must sign for proof of receipt. Only then can the process of franchise exploration truly begin. Let’s talk about the process of disclosing.