This document may be used to register an offer and sale of franchises or to register a renewal statement or annual report. The document also contains a certification statement.
Puerto Rico Rhode Island Franchise Registration Application
Category:
State:
Multi-State
Control #:
US-4-10-STP
Format:
Word;
Rich Text
Instant download
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How to fill out Rhode Island Franchise Registration Application?
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FAQ
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.
Financial statements: A franchisor must provide three years of financial statements to the franchisee as part of the FDD. This includes balance sheets, statements of operations, owner's equity, and cash flows. Contracts: This is where the franchisor outlines the franchise agreement.
Under the federal franchise laws, at the national level, a franchisor's FDD will automatically expire and require renewal within 120 days of the franchisor's fiscal year end.
The fee for a post-effective amendment is $120. On the Department website, franchisors can access required forms including the Application for Franchise Registration, Consent to Service of Process, Franchise Seller Disclosure Form, and Guarantee of Performance.
Mandatory 14-Day and 7-Day Cooling Off Periods The FDD must be delivered to a prospective franchisee at least 14 calendar days before the franchisee signs any binding agreement or pays any consideration for the franchise.
The franchise disclosure document (FDD) disclosure and waiting period is 14 days from the date the the FDD is delivered to a prospective franchisee and the FDD receipt page is signed.
FTC 14-Day Rule: FTC regulations require that you distribute a complete Franchise Disclosure Document (FDD) with exhibits to all prospective franchisees on a date that is on a date that is not less than 14 days prior to the signing of any agreement or the acceptance of any money.
Rhode Island is a franchise registration state, as it requires franchisors to file the FDD with the Rhode Island Department of Business Regulation, Securities Division.