Copy number in a Franchise Agreement - Online Editor

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How to copy number in the Franchise Agreement

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all right great welcome back so what were going to talk about in this particular video is the individual franchise agreement now this is a short video because this is the easiest to understand of the franchise arrangements now Im gonna draw on the board over on this side and I hope you can see me you have a franchisor okay ie Ronald McDonald Wendy you know whatever the Fred the owner of the trademark product etc who makes a single agreement with a single franchisee okay now this line that weve got here is the individual franchise agreement that means that franchisor allows a single franchisee to operate a single location okay so to use an example one of my students has an Italian ice franchise and from what I understood from him the franchisor has told him you my friend can operate a single location to sell my products and use my trademark and you can do it at this one location only okay now the franchisor is free to make additional individual franchise arrangements and once again w

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What are the key items in the disclosure document?

How is a Franchise Disclosure Document Structured? Item 1: The Franchisor, and any Parents, Predecessors, and Affiliates. Item 2: Business Experience. Item 3: Litigation. Item 4: Bankruptcy. Item 5: Initial Fees. Item 6: Other Fees. Item 7: Estimated Initial Investment. Item 8: Restrictions on Sources of Products and Services.

What does Item 19 in the FDD typically cover?

Under Item 19 of the Franchise Disclosure Document (FDD), if a franchisor makes financial performance representations (FPR) to prospective franchisees in the sale of a franchise, it must disclose such FPRs. Franchisors are not required to make FPRs to prospective franchisees.

What is included in a FDD?

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, owners equity, and cash flows. Contracts: This is where the franchisor outlines the franchise agreement.

How many items are there in the FDD?

Generally, FDDs contain information about the franchisor, the franchise system and the investment that the franchisee will be required to make. In all, there are 23 specific items each FDD includes. They are outlined below.

What information is included in a franchise agreement?

Details of any initial fee and any other continuing fees that a franchisor may charge. Details of what happens if the franchisee wants to sell the business, or if the franchisee dies or is incapacitated. Details of how and when the franchise agreement may be terminated.

What are the 23 items in the FDD?

The 23 Franchise FDD Items Item 1: The Franchisor and any parents, predecessors, and affiliates. Item 2: Business experience. Item 3: Litigation. Item 4: Bankruptcy. Item 5: Initial fees. Item 6: Other fees. Item 7: Estimated initial investment. Item 8: Restrictions on the sources of products and services.

What is the item 23 in the UFOC?

Item 23: Receipts The final section is a receipt page for your prospect to sign so you can document when they received the FDD.

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