What Is the Uniform Franchise Offering Circular?
The Uniform Franchise Offering Circular (UFOC) is a legal document that franchisors must furnish to franchisees, as regulated by the Federal Trade Commission. This document must be presented at least 10 days prior to the signing of the Franchise Agreement. The UFOC contains material information about a franchise operation and is designed to help franchisees analyze the merits of a franchisor. Read More »
Obtaining and Analyzing Franchise Financial Information
If you are serious about a particular franchise opportunity you will be given a copy of the franchisor’s Uniform Offering Circular (UFOC), which contains financial and material information about the franchisor. The Federal Trade Commission (FTC) mandates that franchisors provide a financial disclosure document to all prospective franchisees prior to signing the Franchise Agreement. Read More »
What Rights Do You Have to Sell Your Franchise?
If you have decided that you know longer have the desire or ability to carry out the terms of your Franchise Agreement, your ability to sell your franchise depends on the franchisor. Whether or not you can sell your franchise and under what terms and conditions are outlined in your Franchise Agreement. As Franchise Agreements generally are drafted to protect the best interests of the franchisor, they often contain buy-back and right of first refusal clauses. Read More »
Getting Out of a Franchise
When it comes to breaking a franchise contract, the law usually swings in favor of the franchisor. The main reason is franchisors are able to limit their liability through UFOCs and franchise agreements with built-in clauses and disclosure. Because franchisors must list and substantiate earnings claims, current and past litigation, how many franchises are in operation and how many have been terminated, along with anything else material to the business, franchisees have less wiggle room when opting out of an agreement. Read More »
How to Learn About a Franchise's Financial Performance
The information you will be able to discover regarding the financial performance of a specific franchise depends, in part, on whether you are a potential purchaser or simply a curious member of the public. Read More »
How Can I Find a Great Location for My Franchise?
Location is a critical factor in the success of any franchise. But unless you are committed to having a great operation focused on the needs of your customer, you can have the greatest location in the world and still fail. Read More »
I am not happy with all of the terms proposed by the franchisor. Can I negotiate some of the…
By Michael Seid and Kay Ainsley
Franchisors are very reluctant to negotiate changes to their system. The standards set by the franchisor are what guarantees Read More »
I Am Looking at Purchasing a Franchise. Do I Need to Hire a Franchise Lawyer?
A franchise agreement is a contract; it identifies the rights and obligations of both the franchisor and the franchisee. Read More »
Litigation from Franchisees Against Franchisors
Opening up your own business is exciting, but if you get caught up in that excitement and fail to carefully review all legal documents Read More »
What Franchise Payments Should Franchisees Expect to Pay?
There are several one-time and ongoing payments related to owning a franchise. Read More »
