FYI – As of now UFOCs may no longer be used for franchise sales anywhere in the U.S. – FDD – Franchise Disclosure Document is the new format.
The Federal Trade Commission notes 15 states within the United States that require the use of a Franchise Offering Circular. Thirteen of the 15 states require franchisors to utilize a state agency to file their Franchise Offering Circular’s as a matter of public record. The number one source for finding the Franchise Offering Circular in a prepackaged bundle is FranZoom, our bundles packages will enable you to have all your necessary documentation completed accurately and ready to turn over to a state agency for filing. At FranZoom we also offer a comprehensive template package containing the necessary Franchise Offering Circular templates needed to keep your franchise compliant with legal policies.
The 15 states that require franchisors to file a Franchise Offering Circular are; California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
Educate Yourself on the 23 Required Franchise Offering Circular Categories.
The Franchise Offering Circular contains the following information; a cover page, table of contents, and 23 categories which are also sometimes referred to as “Items”. These 23 items are as follows:
· Cover Page
· Table of Contents
- 1. The Franchisor, Parents, Predecessors, and Affiliates.
- 2. Identity and Business Experience.
- 3. Litigation History.
- 4. Bankruptcy.
- 5. Initial Franchise Fee.
- 6. Other Fees and Expenses.
- 7. Franchisee’s Estimated Initial Investment.
- 8. Vendor Restrictions on Products and Services.
- 9. Franchisee Obligations.
- 10. Financing Arrangements.
- 11. Franchisor Obligations.
- 12. Territories.
- 13. Trademarks.
- 14. Patents, Copyrights, and Proprietary Information.
- 15. Franchisee Obligations of Participation.
- 16. Franchisee Sales Restrictions on Offered Goods and Services.
- 17. Dispute Resolutions of Renewal, Termination, Repurchase, Modification and/or Transfer of the Franchise Agreement.
- 18. Public Figures.
- 19. Financial Earnings.
- 20. List of Franchise Outlets.
- 21. Financial Statements.
- 22. Contracts.
- 23. Acknowledgment of Receipt.
The Franchise Offering Circular may seem a bit overwhelming which is why it’s imperative to utilize one main resource for all of your franchise business needs. At FranZoom you can find all the information and documentation needed in cost effective and affordable bundled packages. Our packages contain the most up-to-date templates for the Franchise Offering Circular and guides that walk you through all the necessary steps toward compliance and successful franchise business practices.