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A franchisor must provide a prospective franchisee a Franchise Disclosure Document ( FDD) at some point in the discussion process. It contains 23 items describing the relationship between franchisor and franchisee. It also contains the then current Franchise Agreement, which governs the relationship The prospect must sign and date the receipt acknowledging the issuance of the FDD. Nothing is obligated until execution of the Franchise Agreements, as well as the The Uniform Franchise Offering Circular or UFOC.
The Uniform Franchise Offering Circular, or UFOC, is one of the most significant documents you will receive from the franchisor. These documents contain a wealth of information about the franchisor, which may seem repetitive and redundant and it is imperative that both you and your attorney read it.
Some of the criterion's a UFOC must contain is their History and Experience, Financial Factors, Obligations and Restrictions, Exhibits, Earnings Claim, along with other considerations.
An in-depth elaboration of these criterion's can be found under the source below.
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