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While a franchisor may be happy to take someone into the franchise who has no previous experience of running a business, there still need to be levels of capability. It is probable that, in a white collar franchise, it will look for someone who has a form of experience in a white collar role.
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;
The franchisor's business background, ethics and any past bankruptcies. Fees and financial arrangements. Any restrictions on how the franchisee can source products and services, or what they are allowed to sell.
For a franchise to be legally binding, it must follow a set of federal and state rules and regulations including: The franchisor must provide a disclosure document, referred to as an FDD which discloses the 23 prescribed pieces of information the franchisee must be made aware of.
Massachusetts is classified as a non-registration state because there is no state franchise registration, business opportunity exemption registration, or other franchise disclosures required by the state.
How much does it cost to start your own franchise? Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.
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).