Massachusetts Franchise Comparison Worksheet
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How to fill out Franchise Comparison Worksheet?
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FDD Item 19 is the section of the Franchise Disclosure Document where franchisors must disclose their financial performance representations. If a franchisor elects to make a financial performance representation, it must be fully disclosed in Item 19 and must comply with federal and state franchise laws.
Ingly, if a franchisor requires franchisees to purchase or lease certain goods or services from the franchisor, its affiliates, or suppliers approved by the franchisor, Item 8 of the Franchise Disclosure Document (FDD) requires that the franchisor to disclose certain information pertaining to those ?purchase ...
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.
The Franchise Rule requires the pre-sale disclosure of material information to prospective franchisees about the franchisor, the franchised business, and the terms and conditions that govern the franchise relationship.
Item 21 of the amended Rule permits a new franchisor to issue an unaudited initial balance sheet, so long as that balance sheet is ?prepared in ance with generally accepted accounting principles.
Generally speaking, Item 19 answers the question, "how much money can I make?" Under the Federal Franchise Rule, a financial performance representation is defined as, "Any representation, including any oral, written, or visual representation, to a prospective franchisee, including a representation in the general media, ...
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.
