Under Philippine law, franchisors must provide a franchise disclosure document (FDD) containing details on fees, obligations, financial performance, and material risks at least 14 days before signing. Franchise agreements must be written, clear, and fair, allowing prospective franchisees to make informed decisions and exercise any cooling-off rights.

In the Philippines, franchisors are required to provide prospective franchisees with a Disclosure Document (DD) under the Franchise Law (Republic Act No. 9501). This document must include financial statements, details of fees and obligations, litigation history, business performance, and information on existing franchisees. It’s meant to be given before any agreement is signed, giving buyers time to review and ask questions. While it might feel a bit formal, this transparency is crucial it protects both sides and helps franchisees step in confidently, knowing they’re making an informed decision instead of taking a leap in the dark.