Franchises have become a large part of the American economy and have provided many entrepreneurs with the opportunity to own a small business that is backed by an established brand. While buying a franchise is often times easier than starting your own small business from scratch, it is important to remember that purchasing a franchise comes with several key processes that must be given the utmost attention. It is also important for anyone interested in franchising their business to understand the materials you must provide to franchisees.
As you begin the process of meeting with franchisors and determining whether or not their model is a good fit for you, you will need to ensure you are provided with two important documents: a Franchise Disclosure Document (FDD) and a Uniform Franchise Offering Circular (UFOC). These documents provide valuable information about a franchise system including the history of the franchise, the amount of franchise fees and royalties, regulations regarding leasing, marketing, and training, and other facts you need to know as a potential franchisee.
Both the Franchise Disclosure Document (FDD) and Uniform Franchise Offering Circular (UFOC) are required by state and federal law, and it is vital that you examine these documents closely with your attorney before making any verbal commitments to a franchisor or signing a franchise agreement.
If you are interested in purchasing a franchise, or franchising your current business, you will need to understand the importance of the Franchise Disclosure Document (FDD) and Uniform Franchise Offering Circular (UFOC).
Buying into a franchise is an exciting venture that comes with many new responsibilities. Luckily, I am here to help when it comes to your Franchise Disclosure Document (FDD) and Uniform Franchise Offering Circular (UFOC). If you are interested in purchasing these documents for your franchise, contact me today.