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These legal documents, along with the operating manuals, staffing, training programs, and marketing initiatives, are your main investments in the franchise system. The two primary documents you'll create are the Franchise Agreement and the Franchise Disclosure Document (FDD).
California, Connecticut, Florida, Georgia, Illinois, Iowa, Maryland, Nebraska, North Carolina, Ohio, South Carolina, South Dakota, Texas, Virginia and Washington require a surety bond if the seller makes certain representations, such as a guarantee of the purchase or a buy-back of the business opportunity, if the ...
The Franchise Rule requires franchisors to make material disclosures in five categories: (1) the nature of the franchisor and the franchise system; (2) the franchisor's financial viability; (3) the costs involved in purchasing and operating a franchised outlet;
In addition to the Federal Franchise Rule, franchise laws are also comprised of state-specific franchise laws and regulations relating to a franchisor's disclosure obligations, the relationship between franchisor and franchisee and the review and registration franchise disclosure documents.
Under the Business Opportunity Law, a franchise offering qualifies as a ?business opportunity? if the initial fee is greater than $300, and the franchisor represents that it will provide a sale or marketing program to the franchisee that will enable the franchisee to derive income totaling more than the price paid for ...
Louisiana is not a franchise registration state but has enacted business opportunity laws that apply to franchisors that do not have a federally registered trademark.