FDD Item 23
Receipts
FDD Item 23 is the signed receipt acknowledging the buyer received the FDD. The FTC Franchise Rule requires that the buyer receive the FDD at least 14 calendar days before signing any binding agreement or paying any money.
Why It Matters
Item 23 establishes the start date of the 14-day cooling-off period. Sign Item 23 dated, keep a copy, and verify the 14-day window has fully elapsed before signing the franchise agreement. The franchisor must also keep a copy of the signed receipt.
What Item 23 Must Disclose
- Signed acknowledgment that the buyer received the FDD
- Date of receipt
- Identification of the buyer and the franchise opportunity
What to Look For
- Backdated Item 23 receipts — a violation of the FTC rule that can void the agreement
- Pressure to sign within the 14-day window — itself a regulatory red flag
- Multiple FDD versions delivered — verify which version the receipt corresponds to
Go Deeper
FDD Item 23 Receipts: The Last Page That Actually Matters
Item 23 is two pieces of paper most buyers sign without reading. Done right, it's your evidence that the 14-day cooling-off clock started when you actually got the FDD. Done wrong, it's the document that makes you lose a future dispute before you even file it.