The franchisee desires to purchase a franchise for the location described in the document. The company requires that the franchisee complete this questionnare in order to enable the company to confirm that it and its employees and representatives have fully complied with all applicable franchise registration and disclosure laws.
Alaska Franchisee Closing Questionnaire
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State:
Multi-State
Control #:
US-9-01-STP
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Word;
Rich Text
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How to fill out Franchisee Closing Questionnaire?
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FAQ
The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation.
One of the critical directives in federal law is that a franchisor must provide prospective franchisees an appropriate franchise disclosure document (a ?FDD?) at least 14-days before entering into a franchise agreement for the sale of a franchise or accepting any payment connected with the franchise sale.
The Federal Trade Commission (FTC) "Franchise Rule" governs franchising in the United States, and requires that franchisors have certain legal documents in order to offer a franchise: the Franchise Disclosure Document (FDD), and the Franchise Agreement.
Under Item 8, a franchisor must disclose the franchisee's obligations to purchase or lease goods or services in the establishment or operation of the franchised business that are ?source-specific?.
As a general rule, bona fide relationships among general partners are excluded from the Federal Franchise Rule. The substance and nature of the partnership is important, and in general, a bona fide partnership requires proportionate allocation of liability exposure and risk.
For example, the franchisor must disclose the business background of the franchisor and its officers, their litigation history?including suits filed by franchisees concerning the franchise relationship?and statistics on the number of franchisees who have left the system.
The primary franchising documents needed to create a franchise relationship and franchise your business include: Franchise disclosure document. Franchise agreement. Operations manual.
Under Item 19 of the Franchise Disclosure Document (FDD), if a franchisor makes financial performance representations (FPR) to prospective franchisees in the sale of a franchise, it must disclose such FPRs. Franchisors are not required to make FPRs to prospective franchisees.
A disclosure document is the broad term used to describe all regulated fundraising documents for the issue of securities. There are four types of disclosure document: a prospectus. an offer information statement. a profile statement, and.