This form requests certain information with regard to each corporate officer, director, partner, or other principal of the franchise sales agent. The form also contains a supplemental franchise sales agent statement which is to be used when reporting a change of corporate officers, directors, or other principals of the franchise sales agent.
Minnesota New York Franchise Sales Agent Statement
Category:
State:
Multi-State
Control #:
US-4-16-2-STP
Format:
Word;
Rich Text
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How to fill out New York Franchise Sales Agent Statement?
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FAQ
The franchise disclosure document (FDD) is a legal disclosure document that must be given to individuals interested in buying a U.S. franchise as part of the pre-sale due diligence process. The document contains information essential to potential franchisees about to make a significant investment.
The primary franchising documents needed to create a franchise relationship and franchise your business include: Franchise disclosure document. Franchise agreement. Operations manual. Franchise Registration Applications and Notices. Financial Statements.
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.
What is included in the information statement. The information statement highlights issues to think about before becoming a franchisee. The information statement includes: the risks of franchising. doing research and due diligence.
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.
The FDD outlines comprehensive information about the roles of both parties involved in the franchise?the franchisor and the franchisee?and is designed to enable the potential franchisee to make an honest and informed decision about their investment into the business.
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.
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.