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Article: The uniform franchise offering circular: what it needs to tell you, but sometimes won't. The Federal Trade Commission requires franchisors to provide the Uniform Franchise Offering Circular (UFOC) to prospective franchise candidates.(Special section: minorities in franchising)
- Article from:
- Franchising World
- Article date:
- June 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Let's rake a look at the most important document any prospective franchisee must review before investing in a franchise. While it's a legal document, we can get a better understanding of this all important document from a non attorney point of view.
The reason it is required is basically to have the franchisor "disclose" certain information to a potential franchisee before any contract is signed or any payments made.
The Federal Trade Commission requires franchisors to provide the Uniform Franchise Offering Circular (UFOC) to prospective franchise candidates. The UFOC must be given to a prospective franchisee either at the first face-to-face meeting, or ...