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23 Items a Franchisor Must Disclose

The FTC Franchise Ruling calls for franchises to disclose these 23 items of information to potential buyers/investors. Make sure the Uniform Franchise Offering Circular/UFOC (developed by the North American Securities Administrators Association)

and the contract you sign address these points.

1.   The franchisor, its predecessors and affiliates
2.   Business experience
3.   Litigation
4.   Bankruptcy
5.   Initial investment
6.   Initial franchise fee
7.   Obligations to participate in the actual operation of the franchise
      business
8.   Financing
9.   Other fees
10. Franchisee’s obligations
11. Franchisor’s obligations
12. Restriction on sources of products and services
13. Territory
14. Trademarks
15. Patents, copyrights and proprietary information
16. Restrictions on what the franchisee may sell
17. Renewal, termination, transfer and dispute resolution
18. Public figures
19. Earnings claims
20. List of outlets/franchises
21. Financial statements
22. Contracts
23. Receipt