Documents Required For Franchise Agreement In Michigan
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Issues typically addressed in a franchise agreement include: Initial and ongoing franchise fees. Timelines for opening the franchise for business. Franchise territory protections (if applicable) Specifications for equipment, supplies, and inventory. The term of the agreement and conditions for its renewal.
3 Important Items Included in the FDD Estimated Initial Investment. Obviously, you'll need to know what your total upfront investment will be. Franchisee's Obligations. It's important to know that you have certain obligations when you're a franchisee. Outlets and Franchisee Information.
The primary franchising documents needed to create a franchise relationship and franchise your business include: Franchise disclosure document. Franchise agreement. Operations manual.
There are two main types of franchising, known as Product Distribution Franchising (Traditional Franchising) and Business Format Franchising, which are conducted under a variety of franchise relationships.
A disclosure document - tells the franchisee important information about the franchisor and franchised business.
The FDD is a very important document. You and your professional advisors should read and understand the entire document. It has 23 "Items" that will provide many of the answers to questions you may have about the franchisor.
Questions to ask former and current franchisees Understand what it means to be a franchisee. Find out if current franchisees are successful. Understand if former franchisees were successful. Find out if franchisees feel supported by the franchisor. Learn about the pros and cons of the franchise.
Here are six things you must do to register your business in the State of Michigan. Obtain a FEIN. Register the assumed business name with the County Clerk. Obtain UIA Number. Obtain a Sales Tax License. Register your business with the Michigan Department of Treasury. Obtain all necessary permits.
The disclosure document helps potential franchisees make an informed decision about the franchise. Disclosure documents must be in the same format and have the information in Annexure 1 of the Franchising Code. Certain information must be in the disclosure document.