This form is a franchise lease agreement. The lessor agrees to lease to the franchise owner certain real estate as described in the document. The franchise owner will use and occupy the premises solely for an ABC System Restaurant.
Colorado Lease for Franchisor - Owned Locations
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FAQ
Franchise Rule | Federal Trade Commission.
In contrast to the Franchise Registration States, where the franchising process is regulated by supplemental laws extending beyond federal franchise regulations, Colorado is considered a non-registration state.
The federal regulation of franchise sales activity commenced in 1979 under a regulation promulgated by the Federal Trade Commission (FTC), colloquially referred to as the ?FTC Franchise Rule.?
The property owner provides business space to a franchisee to operate the franchisor's business plan in return for a lease payment. Under the lease terms, the property owner gives rights to the franchisor to replace and assume the Franchisee Business Entity under certain conditions.
As noted above, the FTC regulates franchising at the federal level under the FTC Franchise Rule. The FTC Franchise Rule (the FTC Rule) governs franchise offerings in each of the 50 states, the District of Columbia and all US territories.
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 protects franchise owners from unfair and deceptive practices on the part of the larger business ("the franchisor"). For example, if a franchise owner is unable to open, and the franchisor promised a fee refund but doesn't give one, FTC may take legal action.
Franchise Rule | Federal Trade Commission.