Maryland Franchisee Closing Questionnaire

State:
Multi-State
Control #:
US-9-01-STP
Format:
Word; 
Rich Text
Instant download

Description

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.
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FAQ

A Franchise Disclosure Document includes 23 specific pieces of information (called items), the franchisors franchise agreement, and various exhibits (like a list of current and past franchisees, and audit financials of the franchisor.

Unlike building an independent business, when you build a franchised outlet, your business always has a horizon. Once your franchise agreement expires, that's it. That's the end. At this point, you have the experience you gained as a franchisee, but you no longer have a business that you can operate?or sell.

Fees and Payments. The disclosure document will provide details to you regarding the requirement and specifics of any franchisee payments to the franchisor. This information must include items such as marketing fees, advertising fees or other financial obligations requiring contributions.

As a franchisee, you cannot change products and services ing to your own preferences or interpretation of market conditions. It's the franchisor's responsibility to determine the company's structure and products.

There are at least a few options: (1) determine whether or not you have any leverage you can use against the franchisor so that it will allow you to exit the business; (2) sell the business to a third party or existing franchisee; (3) sell the business back to the franchisor; or (4) find out if the franchisor is ...

Most franchisors must update their disclosure document and key facts sheet each year. Franchisors must tell their franchisees about materially relevant facts. This includes if majority ownership of the franchisor or franchise system changes.

Franchise agreements vary between different franchises, but these seven areas should be addressed in every franchise agreement. Use of Trademarks. Location of the Franchise. Term of the Franchise. Franchisee's Fees and Other Payments. Obligations and Duties of the Franchisor. Restriction on Goods and Services Offered.

How is a Franchise Disclosure Document Structured? Item 1: The Franchisor, and any Parents, Predecessors, and Affiliates. Item 2: Business Experience. Item 3: Litigation. Item 4: Bankruptcy. Item 5: Initial Fees. Item 6: Other Fees. Item 7: Estimated Initial Investment. Item 8: Restrictions on Sources of Products and Services.

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Maryland Franchisee Closing Questionnaire