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uniform franchise disclosure Tagged Articles



What is a UFOC Uniform Franchise Offering Circular
What is a UFOC? What Does the UFOC Contain? How Do I Use this Franchise Document? Description of Standard UFOC Items

Other uniform franchise disclosure Related Articles

Can American Franchisors Use \"Wrap Around\" Disclosure Documents in Canada?
The purpose of this article is to consider whether a U.S. franchisor can comply with the current franchise laws of Alberta and Ontario by using a "wrap" to their current Uniform Franchise Offering Circular ("UFOC"). This process is directly analogous to the practice of using a state addendum to satisfy the needs of an individual state, while maintaining uniformity in the form and content of a franchisor's UFOC. Before delving into how a U.S. franchise system should go about making disclosure in Canada, a few bold statements concerning the state of franchising and franchise legislation in Ontario are in order.
Investigating Franchise Offerings
Before investing in any franchise system, be sure to get a copy of the franchiser's disclosure document. Sometimes this document is called a Franchise Offering Circular. Under the FTC's Franchise Rule, you must receive the document at least 10 business days before you are asked to sign any contract or pay any money to the franchiser. You should read the entire disclosure document; make sure you understand all of the provisions. The following outline will help you to understand key provisions of typical disclosure document as well as ask questions about the disclosures. Get a clarification or answer to your concerns before you invest.
FRANCHISE EARNINGS CLAIMS – PART II
Franchise Earnings Information (Part 2) Part 1 of this article discussed how current Ontario and Alberta law makes it difficult to provide franchise prospects with information about how much they can expect to make in any given franchise. In Part 2 of this article, Peter Macrae Dillon discusses the advantages and disadvantages of including earnings information in a franchise disclosure document and how to prepare earnings information for inclusion in a disclosure document. Should we provide earnings information in our disclosure document?
16 Things You Should Know about Ontarios Franchise Legislation
Ontario, Canada's most populous province and economic engine, introduced franchise legislation in 2000. A surprising number of franchise systems are unaware of what they need to do to comply. This article examines what a franchise is, including possible exemptions available. It then discusses how to properly prepare a franchise disclosure document, and how to provide the document to franchise prospects in a way that complies with the law. The ability to rescind for improper disclosure, and to sue for misrepresentation, is also discussed. Finally, the requirement that parties to a franchise agreement deal with each other fairly, in good faith, and in a commercially reasonable way, is discussed. Great read for franchisees and franchisors alike! peter macrae dillon franchise lawyer ontario attorney canada
Franchise Laws In North America
This paper compares Canadian franchise legistlation found in Ontario and Alberta with the Uniform Franchise Offering Circular and Federal Trade Commission disclosure regimes found in the registration states in the US. peter macrae dillon Siskinds franchise franchisor franchising lawyer attorney Toronto Ontario Canada
Government Regulation of Franchises
In the United States, all franchisors must abide by the Federal Trade Commission's (FTC) Franchise Rule, which requires franchisors to prepare a disclosure document called the Uniform Franchise Offering Circular (UFOC ) / Franchise Disclosure Document (FDD) and give a copy of that document to prospective franchisees prior to their purchase of a franchise.
What is the Franchise Ufocs Role
Learn more about the UFOC before buying a franchise. Franchising is a contract system between two parties-the franchisor and the franchisee. As with any contractual agreement, there are legal documents and agreements that must be followed by both parties. The first of these documents is called a UFOC, or Uniform Franchise Offering Circular. Essentially this document is a disclosure of specific types of information that the franchisor must present before any agreements are signed.
Special Issues for a Subfranchisor
If you want the right to sell franchises on behalf of a franchisor and, perhaps, also operate your own franchises, you may want to become a subfranchisor. A subfranchisor is sometimes called a "master franchisee," particularly in international deals. A subfranchisor steps into the shoes of the franchisor and acts as the franchisor in a given area (for example, state or county). A subfranchisor sells its own franchises and directly enters into a franchise agreement with a franchisee. The franchisor is not a party to the franchise agreement. A subfranchisor is subject to the FTC Franchise Rule and state franchise registration and disclosure laws to the same extent as a franchisor. Therefore, a subfranchisor is obligated to have its own Franchise Disclosure Document.

E-Mailing the Franchise Disclosure Document to Prospective Franchisees
Under the FTC Franchise Rule,a franchisor can deliver the Franchise Disclosure Document (“FDD”) electronically by e-mailing the FDD in a pdf form or mailing a FDD copied on to a CD-ROM to a prospective franchisee. The first personal meeting requirement has been eliminated. The prospective franchisee must have the FDD and Exhibits at least 14 calendar days before the franchisee signs any agreement with the franchisor or gives the franchisor any money. Electronic delivery of the FDD disclosure will save the franchisor substantial time and money as the cost of copying and mailing a Franchise Disclosure Document and Exhibits, let alone personnel cost, really adds up. The FTC estimates that the cost to copy and mail a disclosure document is about $35.00 each. The states having franchise registr
How To Investigate Franchise Offerings
Before investing in any franchise system, be sure to get a copy of the franchiser's disclosure document. Sometimes this document is called a Franchise Offering Circular. Under the FTC's Franchise Rule, you must receive the document at least 10 business days before you are asked to sign any contract or pay any money to the franchiser. You should read the entire disclosure document; make sure you understand all of the provisions. The following outline will help you to understand key provisions of typical disclosure document as well as ask questions about the disclosures. Get a clarification or answer to your concerns before you invest.
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