Add Alternative Choice Electronic Franchise Templates For Free

The general franchise package should contain: Details about the use of the franchisor's trademark/trade name and intellectual property. The franchise agreement. All the know-how (business and technical methods and processes) on how to run the franchise business.

The franchise disclosure document (FDD) is a legal disclosure document that must be given to individuals interested in buying a U.S. franchise as part of the pre-sale due diligence process. The document contains information essential to potential franchisees about to make a significant investment.

14-Day Disclosure Period ? Under the FTC's Federal Franchise Rule, you must disclose your FDD to a prospective franchisee no less than 14 calendar days prior to the franchisee signing any agreement with you or your affiliate or paying any fee to you or your affiliate.

What Questions Should I Ask Franchisors When Evaluating a Franchise? Overall Questions to ask the Franchisor: Questions about Consumer Research and Marketing: Questions about Training: Questions about Products and Services: Questions about Operations: Questions about Advertising and Marketing:

When a franchisor must give the disclosure document. A franchisor must usually give a potential franchisee a copy of their disclosure document at least 14 days before the franchisee: enters into the franchise agreement, or. makes a non-refundable payment.

FTC 7-Day Rule: In addition to the 14 Day Rule, the FTC also requires that no less than 7 days prior to the signing of any agreement or the acceptance of any money, you deliver to a prospective franchisee a completed copy of all agreements and related documents to be signed by the franchisee.

FTC 14-Day Rule: FTC regulations require that you distribute a complete Franchise Disclosure Document (FDD) with exhibits to all prospective franchisees on a date that is not less than 14 days prior to the signing of any agreement or the acceptance of any money.

The FTC requirement prevents a franchisor from receiving a binding franchise agreement or funds from a prospective franchisee until the prospect has held the FDD for 14 calendar days. A 7-day waiting period is required if the franchisor unilaterally alters the terms and conditions of the Franchise Agreement.

Yes. The franchisor must file a Post-Effective Amendment Application with the DFPI. This application is filed after a registration is effective. The application must include a facing page and a notarized verification page (Form C).