An frd or functional requirements document serves as a contract for formal statement, between the business stakeholders and the technology team, on an application’s functional requirements. What is a functional requirements document? The functional requirements document (frd) is a formal statement of a product's functional requirements. This document is a functional requirements document (frd) template that outlines the sections and content needed for documenting software requirements. This document underlies the functional requirements for implementing online banking solution (obs) for global bank ltd (gbl).