Item 16: Restrictions on What Franchisee May Sell

Information about any restrictions on the goods or services that a franchisee may sell in the franchised business, as set forth in the franchise agreement. Because uniformity of customer experience is a virtue in franchising, nearly all franchise agreements impose some form of limitation on the goods and services a franchisee may offer and sell from its business. Therefore, while Item 16 is one of the shorter Items in the FDD, it is a critical Item that prospective franchisees look to when deciding whether to invest in the franchise system.