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.
Nevada Franchisee Closing Questionnaire
Category:
State:
Multi-State
Control #:
US-9-01-STP
Format:
Word;
Rich Text
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FAQ
A disclosure document is the broad term used to describe all regulated fundraising documents for the issue of securities. There are four types of disclosure document: a prospectus. an offer information statement. a profile statement, and.
The Federal Trade Commission (FTC) "Franchise Rule" governs franchising in the United States, and requires that franchisors have certain legal documents in order to offer a franchise: the Franchise Disclosure Document (FDD), and the Franchise Agreement.
Overall Questions to ask the Franchisor: What method is used to protect franchisees from poorly performing franchises? Is there a franchise owners association? Is there a franchise advisory council? Who owns the trademarks, service marks, etc., and are they federally registered?
One of the critical directives in federal law is that a franchisor must provide prospective franchisees an appropriate franchise disclosure document (a ?FDD?) at least 14-days before entering into a franchise agreement for the sale of a franchise or accepting any payment connected with the franchise sale.
The primary franchising documents needed to create a franchise relationship and franchise your business include: Franchise disclosure document. Franchise agreement. Operations manual.
Some of these questions are: How long have you been in business? What made you choose this franchise? How would you rate your relationship with the franchisor? How would you rate the initial training?
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.
For example, the franchisor must disclose the business background of the franchisor and its officers, their litigation history?including suits filed by franchisees concerning the franchise relationship?and statistics on the number of franchisees who have left the system.