The ABC Unit Franchise Agreement is written from the perspective of the franchisor, based on the assumption that the franchisor will normally have prepared the initial draft of the franchise agreement which is included in the Offering Circular. The agreement may or may not be subject to negotiation, depending on state law and the current business practices of the franchisor.
Puerto Rico Annotations for Unit Franchise Agreement
Category:
State:
Multi-State
Control #:
US-2-01-2-STP
Format:
Word;
Rich Text
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FAQ
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.
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.
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.
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.
No local laws or government agencies regulate the offer or sale of franchises in Puerto Rico. As a US territory, however, Puerto Rico is generally subject to US laws and regulations, including the Federal Trade Commission Franchise Rule.
The Franchise Agreement It needs to fully prepare the franchisee to operate from day one. Including automatic or discretionary rights of renewal and the ability to renegotiate terms. Outlining exclusive territory rights, obligations and ability to dilute territory if obligations are not met.
In exchange for the right to use the franchisor's name and benefit from the franchisor's assistance, you will pay some or all of the following: Initial Franchise Fee and Other Expenses. ... Continuing Royalty Payments. ... Advertising Fees. ... Site Approval. ... Design or Appearance Standards. ... Restrictions on Goods and Services You Sell.