That's correct. There are 2 different types of registration modes available with JFBConnect: automatic or 'normal'. Automatic would create the user's account automatically without any forms. The "Normal' registration flow will show a smaller registration form where the user can select their username, password and will display any extra fields, like your terms. So, you'd need to use the 'normal' mode. Once setup, it will show your terms and conditions if you are using the User - Profile plugin.
Hope that helps explain, but if you have any questions, let us know,
Alex