Information disclosure document, the potential franchisee gets data about the business idea, the pilot unit, also know-how, advice and training.
The franchisor and his team act and guide the franchise members, as well as their employed staff.
The personal support is completed by the franchise manual(s), which represent, after the franchise contract, one of the important pillars on which the franchise system rests.

Informant Disclosure Document

The Franchise Disclosure Document (DDI) is a legal document that the franchisor must provide to prospective franchisees prior to signing the franchise agreement.

This document contains essential information about the franchise, including:

Disclosure document îin a franchise - From practice:

1. History and experience of the franchisor
2. Franchise Intellectual Property Rights
3. Franchisee's Obligations and Responsibilities
4. Franchise Fees and Other Associated Costs
5. Structure and financial conditions of the franchise
6. Court records or other legal issues involved in the franchise
7. Existing franchisees and their financial performance
8. Information about the franchise territory and its restrictions
9. Franchise Advertising and Marketing Policy
10. Conditions for termination of the franchise agreement

The Franchise Disclosure Document (DDI) provides a detailed picture of the franchise and should be carefully studied by potential franchisees before making the decision to invest in this business. It is important that you understand all the terms and conditions in the DDI and seek clarification from the franchisor if you have any questions or concerns.


The Franchise Disclosure Document - Legislative Requests

In accordance with LAW no. 179 of October 10, 2019 for the amendment and completion of Government Ordinance no. 52/1997 regarding the legal regime of the franchise, as well as for the amendment of art. 7 point 15 of Law no. 227/2015 regarding the Fiscal Code

In article 2  -  paragraph 2 and 3

(2) The franchisor provides the future franchisee with information that allows him to participate, in full knowledge of the case, in the development of the franchise contract.
(3) The franchisor provides the potential franchisee with an information disclosure document, which must contain specific data regarding:
a) the history and experience of the franchisor;
b) details regarding the identity of the franchise management;
c) the litigation history of the franchisor and its management;
d) the initial amount that the franchisee must invest;
e) mutual obligations of the parties;
f) copies of the franchisor's financial results from the last year;
g) possession of information regarding the pilot unit.

Usually, the operational manual(s) contain detailed instructions with instructions, notes and advice on how the business concept can be successfully implemented. Not infrequently, some statistical data and an overview of the market and competitors can be found in these franchise manuals.
SYSTEMS are varied
Practically, any business can be franchised, specialists counting about 100 areas in which this can be done.
In Romania, due to a lack of entrepreneurial culture and legislative deficiencies, there are no exact figures and statistics on the number of active networks, but from the research done, there are approximately 550 networks. Most franchise systems are found in the HoReCA, service and retail sectors.
These include, for example, sports and fitness program providers, followed by retail, real estate and beauty. For years, the sector dedicated to the hotel, restaurant and cafe industry has experienced significant development, with many domestic concepts becoming nationally known franchise chains. On de
on the other hand, in the health and education sector, franchise systems are still in their infancy, and the success of medical practices and wellness offers has not reached its peak.
Interested parties can search for a large number of franchise systems in a wide variety of industries using the franchise portal of the Romanian Franchise Association and so they can find what suits them better. Our advice is that, before deciding on any concept, carefully analyze the offers and, if necessary, do some research.