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Article Check - The Uniform Franchise Offering Circular - What Every Franchisee Needs to Know
This year, in October 2006, a new European Union law will secure basic working rights for older workers in the UK and ease the pressures of midlife career change. Until then, however, employers will remain legally entitled to make people redundant for being too old, or to otherwise discriminate purely on the grounds of age. It is a sad fact that ageism and age discrimination will continue, albeit wrapped up as some other (spurious) reason for the discrimination, so older workers will have to be on the lookout when it comes to midlife career change. But far from becoming defensive about your age, look on it as an accumulation of experience and wisdom. High on the list of your key strengths and accumulated wisdom is likely to be the ability to deal with adversity and deal with difficult peo
The franchise terms detail a wide array of vital information, including contract renewal stipulations, franchisor and franchisee obligations, territorial considerations, and dispute resolution. Franchise terms may vary widely from one franchise opportunity to another, and it is crucial that the prospective franchisee thoroughly understand and accept the terms of the franchise prior to signing a contract. It is also strongly recommended that the franchisee also have his or her attorney review the UFOC and franchise contract.
The franchisor is also required to provide financial disclosure, including financial, balance, and income statements. Some franchisors may also make available profit and earnings forecasts, although these are not always required.
Although the Uniform Franchise Offering Circular may present itself as an intimidating document, in reality it is a crucial piece of franchise business information that not only
As an employer, it is understandable that you want to know as much as possible about a prospective employee. A combination of employment application, personal references and background investigations can give you a sense of peace when entrusting an individual with responsibilities within your company. It is also important that employers not rely solely upon the employment application alone. It is estimated that up to 30% of all applications contain some type of falsifications or fabrications. Many methods exist to inquire about the background of a candidate.One of the most utilized types of background checks is the criminal background investigation. All businesses handle some type of sensitive information of some degree. Retail businesses want to be sure prospective employees are c
What? You’re probably asking.
Just when you thought you had done all the heavy reading the law should allow, you’re faced with still more. Unlike your own research, however, this document the law actually requires. What exactly is a Uniform Offering Circular Agreement, or, as it is more commonly called, a UFOC? As you will come to see, it is not only an extremely important document for any franchisee, but it is also a vital layer of business protection that makes franchising one of the lowest-risk entrepreneurial ventures.
Entrepreneur.com defines a UFOC as “[a] regulatory document describing a franchise opportunity that prospective franchisees have to receive before they pay any money, sign any papers or, in some cases, even meet with the franchisor.” The document gives background franchise business information in over 20 categories regarding the selected franchise opportunity and provides a copy of the franchise agreement.
Although hardly a household word, the UFOC has been in existence for well over 25 years but traces its impetus back even further. During the 1960s and1970s, the franchise industry found itself beset with certain unethical behaviors that were adversely affecting those involved in the industry. In 1975, the Midwest Securities Commissioners Association presented the first UFOC. According to Entrepreneur.com, this first edition “was created in response to the disparate disclosure requirements that an increasing number of states were adopting in the early 1970s.” Eventually, all state and federal regulatory authorities adopted the UFOC. In 1979, the Federal Trade Commission (FTC) adopted the UFOC, and since that year, federal franchise law has required that franchisors provide the UFOC to prospective franchisees at least 10 days prior to the signing of the Franchise Agreement.
Specifically, the UFOC discloses franchise information in 23 different categories. This information must be current based on the franchisor’s most recent fiscal year, and if any changes have occurred since that time, the franchisor must make the information regarding these changes available to the potential franchisee in the form of a quarterly revision.
The 23 categories of the UFOC are as follows:
1. The Franchisor, Its Predecessors and Affiliates 2. Business Experience
3. Litigation
4. Bankruptcy
5. Initial Franchise Fee
6. Other Fees
7. Initial Investment
8. Restrictions on Sources of Products and Services
9. Franchisee’s Obligations
10. Financing
11. Franchisor’s Obligations
12. Territory
13. Trademarks
14. Patents, Copyrights, and Proprietary Information
15. Obligation to Participate in the Actual Operation of the Franchise Business
16. Restrictions on What the Franchisee May Sell
17. Renewal, Termination, Transfer, and Dispute Resolution
18. Public Figures
19. Earnings Claims
20. List of Franchise Outlets
21. Financial Statements
22. Contracts
23. Receipt
While covering numerous specific details, these 23 categories fall into several major areas, including history, fees and royalties, organizational management, any major legal issues or cases, franchise terms, and financial disclosure.
The history section will briefly chronicle the founding of the franchise and should include information regarding who started the franchise, any date of incorporation, and how long the company has been franchising.
Under fees and royalties should be listed in detail the initial franchise fee as well as ongoing royalty requirements. The franchisee should note, however, that the franchise fee might not include additional start-up costs such as facility rent, inventory, and equipment.
The organizational management section will provide information regarding the executive team of the franchise. According to Entrepreneur.com, this data should allow the franchisee to obtain an idea of the professional experience of the franchise’s officers and directors as well as discover if any potential conflicts of interest exist between these individuals and the suppliers and/or vendors with whom the franchisee will be doing business.
The UFOC’s legal information categories will inform the franchisee of any major civil, criminal or bankruptcy cases in which the franchise or any of its executive officers have been involved. Entrepreneur.com notes that in today’s litigious society, the presence of past legal involvements may necessarily signal a problem, but, depending upon the nature of the litigations, they may provide good cause for further investigation by the franchisee before entering into a contract.
The franchise terms detail a wide array of vital information, including contract renewal stipulations, franchisor and franchisee obligations, territorial considerations, and dispute resolution. Franchise terms may vary widely from one franchise opportunity to another, and it is crucial that the prospective franchisee thoroughly understand and accept the terms of the franchise prior to signing a contract. It is also strongly recommended that the franchisee also have his or her attorney review the UFOC and franchise contract.
The franchisor is also required to provide financial disclosure, including financial, balance, and income statements. Some franchisors may also make available profit and earnings forecasts, although these are not always required.
Although the Uniform Franchise Offering Circular may present itself as an intimidating document, in reality it is a crucial piece of franchise business information that not only p
If you're thinking about buying a business...and are wanting to buy a business that's both sexy and exciting -- the kind of business you can brag about at all the parties -- then please listen very carefully. Doing so can save you a lot of time, money and energy. Listen: People are always asking me about the most exciting businesses I've bought over the past 50 years. Thing is, I don't buy "exciting" businesses. Why? Because they simply aren't as profitable and stable as the "boring" ones. In fact, if you took all of the businesses I have owned...and if you were to tell me any one of them was in any way, shape or form "exciting"...I would laugh. What normally happens when somebody comes up and asks me what I've been buying lately
Although hardly a household word, the UFOC has been in existence for well over 25 years but traces its impetus back even further. During the 1960s and1970s, the franchise industry found itself beset with certain unethical behaviors that were adversely affecting those involved in the industry. In 1975, the Midwest Securities Commissioners Association presented the first UFOC. According to Entrepreneur.com, this first edition “was created in response to the disparate disclosure requirements that an increasing number of states were adopting in the early 1970s.” Eventually, all state and federal regulatory authorities adopted the UFOC. In 1979, the Federal Trade Commission (FTC) adopted the UFOC, and since that year, federal franchise law has required that franchisors provide the UFOC to prospective franchisees at least 10 days prior to the signing of the Franchise Agreement.
Specifically, the UFOC discloses franchise information in 23 different categories. This information must be current based on the franchisor’s most recent fiscal year, and if any changes have occurred since that time, the franchisor must make the information regarding these changes available to the potential franchisee in the form of a quarterly revision.
The 23 categories of the UFOC are as follows:
1. The Franchisor, Its Predecessors and Affiliates 2. Business Experience
3. Litigation
4. Bankruptcy
5. Initial Franchise Fee
6. Other Fees
7. Initial Investment
8. Restrictions on Sources of Products and Services
9. Franchisee’s Obligations
10. Financing
11. Franchisor’s Obligations
12. Territory
13. Trademarks
14. Patents, Copyrights, and Proprietary Information
15. Obligation to Participate in the Actual Operation of the Franchise Business
16. Restrictions on What the Franchisee May Sell
17. Renewal, Termination, Transfer, and Dispute Resolution
18. Public Figures
19. Earnings Claims
20. List of Franchise Outlets
21. Financial Statements
22. Contracts
23. Receipt
While covering numerous specific details, these 23 categories fall into several major areas, including history, fees and royalties, organizational management, any major legal issues or cases, franchise terms, and financial disclosure.
The history section will briefly chronicle the founding of the franchise and should include information regarding who started the franchise, any date of incorporation, and how long the company has been franchising.
Under fees and royalties should be listed in detail the initial franchise fee as well as ongoing royalty requirements. The franchisee should note, however, that the franchise fee might not include additional start-up costs such as facility rent, inventory, and equipment.
The organizational management section will provide information regarding the executive team of the franchise. According to Entrepreneur.com, this data should allow the franchisee to obtain an idea of the professional experience of the franchise’s officers and directors as well as discover if any potential conflicts of interest exist between these individuals and the suppliers and/or vendors with whom the franchisee will be doing business.
The UFOC’s legal information categories will inform the franchisee of any major civil, criminal or bankruptcy cases in which the franchise or any of its executive officers have been involved. Entrepreneur.com notes that in today’s litigious society, the presence of past legal involvements may necessarily signal a problem, but, depending upon the nature of the litigations, they may provide good cause for further investigation by the franchisee before entering into a contract.
The franchise terms detail a wide array of vital information, including contract renewal stipulations, franchisor and franchisee obligations, territorial considerations, and dispute resolution. Franchise terms may vary widely from one franchise opportunity to another, and it is crucial that the prospective franchisee thoroughly understand and accept the terms of the franchise prior to signing a contract. It is also strongly recommended that the franchisee also have his or her attorney review the UFOC and franchise contract.
The franchisor is also required to provide financial disclosure, including financial, balance, and income statements. Some franchisors may also make available profit and earnings forecasts, although these are not always required.
Although the Uniform Franchise Offering Circular may present itself as an intimidating document, in reality it is a crucial piece of franchise business information that not only
Remember that the majority of customers who have a complaint resolved to their satisfaction are more loyal after the event than they ever were before the problem arose.Now don’t use that as an excuse to make a mess of things for every customer. You’ll soon get caught out. But, when things do go wrong, how can you win the customer round?My first story is about my local Sainsbury supermarket.My wife, Maggie, had bought some fruit. But when she got it home we noticed that the grapes looked a bit "manky" and the pineapple was past its sell by date. So I volunteered to take these back to the store.Whenever I take something back I always feel a little apprehensive. I’ve got so used to people being defensive that I’m almost ready for a fight right from the start.
The 23 categories of the UFOC are as follows:
1. The Franchisor, Its Predecessors and Affiliates 2. Business Experience
3. Litigation
4. Bankruptcy
5. Initial Franchise Fee
6. Other Fees
7. Initial Investment
8. Restrictions on Sources of Products and Services
9. Franchisee’s Obligations
10. Financing
11. Franchisor’s Obligations
12. Territory
13. Trademarks
14. Patents, Copyrights, and Proprietary Information
15. Obligation to Participate in the Actual Operation of the Franchise Business
16. Restrictions on What the Franchisee May Sell
17. Renewal, Termination, Transfer, and Dispute Resolution
18. Public Figures
19. Earnings Claims
20. List of Franchise Outlets
21. Financial Statements
22. Contracts
23. Receipt
While covering numerous specific details, these 23 categories fall into several major areas, including history, fees and royalties, organizational management, any major legal issues or cases, franchise terms, and financial disclosure.
The history section will briefly chronicle the founding of the franchise and should include information regarding who started the franchise, any date of incorporation, and how long the company has been franchising.
Under fees and royalties should be listed in detail the initial franchise fee as well as ongoing royalty requirements. The franchisee should note, however, that the franchise fee might not include additional start-up costs such as facility rent, inventory, and equipment.
The organizational management section will provide information regarding the executive team of the franchise. According to Entrepreneur.com, this data should allow the franchisee to obtain an idea of the professional experience of the franchise’s officers and directors as well as discover if any potential conflicts of interest exist between these individuals and the suppliers and/or vendors with whom the franchisee will be doing business.
The UFOC’s legal information categories will inform the franchisee of any major civil, criminal or bankruptcy cases in which the franchise or any of its executive officers have been involved. Entrepreneur.com notes that in today’s litigious society, the presence of past legal involvements may necessarily signal a problem, but, depending upon the nature of the litigations, they may provide good cause for further investigation by the franchisee before entering into a contract.
The franchise terms detail a wide array of vital information, including contract renewal stipulations, franchisor and franchisee obligations, territorial considerations, and dispute resolution. Franchise terms may vary widely from one franchise opportunity to another, and it is crucial that the prospective franchisee thoroughly understand and accept the terms of the franchise prior to signing a contract. It is also strongly recommended that the franchisee also have his or her attorney review the UFOC and franchise contract.
The franchisor is also required to provide financial disclosure, including financial, balance, and income statements. Some franchisors may also make available profit and earnings forecasts, although these are not always required.
Although the Uniform Franchise Offering Circular may present itself as an intimidating document, in reality it is a crucial piece of franchise business information that not only
It’s the first day of the week and time to evaluate your current Yellow Page ad. You should realize that this ad has a variety of elements that can determine whether it attracts the right customer or, for that matter, any at all. Each has a specific function that can work on it’s on or support a cohesive theme. But let’s concentrate on the first item that more consumers will see and therefore, the most salient piece of the marketing puzzle.It all begins with the headline. Now, depending on several things, you have already decided that it will be your name because (a) you love it, (b) it’s a recognized company or brand name like Honda or Singer, (c) you’re a company that’s been around for ages, or (d) you can’t think of anything else to say. For whatever reason, if you want to use y
The history section will briefly chronicle the founding of the franchise and should include information regarding who started the franchise, any date of incorporation, and how long the company has been franchising.
Under fees and royalties should be listed in detail the initial franchise fee as well as ongoing royalty requirements. The franchisee should note, however, that the franchise fee might not include additional start-up costs such as facility rent, inventory, and equipment.
The organizational management section will provide information regarding the executive team of the franchise. According to Entrepreneur.com, this data should allow the franchisee to obtain an idea of the professional experience of the franchise’s officers and directors as well as discover if any potential conflicts of interest exist between these individuals and the suppliers and/or vendors with whom the franchisee will be doing business.
The UFOC’s legal information categories will inform the franchisee of any major civil, criminal or bankruptcy cases in which the franchise or any of its executive officers have been involved. Entrepreneur.com notes that in today’s litigious society, the presence of past legal involvements may necessarily signal a problem, but, depending upon the nature of the litigations, they may provide good cause for further investigation by the franchisee before entering into a contract.
The franchise terms detail a wide array of vital information, including contract renewal stipulations, franchisor and franchisee obligations, territorial considerations, and dispute resolution. Franchise terms may vary widely from one franchise opportunity to another, and it is crucial that the prospective franchisee thoroughly understand and accept the terms of the franchise prior to signing a contract. It is also strongly recommended that the franchisee also have his or her attorney review the UFOC and franchise contract.
The franchisor is also required to provide financial disclosure, including financial, balance, and income statements. Some franchisors may also make available profit and earnings forecasts, although these are not always required.
Although the Uniform Franchise Offering Circular may present itself as an intimidating document, in reality it is a crucial piece of franchise business information that not only
It would be safe to say that you would have probably entertained the question of how to get promoted even before you graduated or left school. In my chats with juniors from my industry, I am often asked this question which I gladly answer. However, I sense they simply want short cuts to the next level. These experiences pushed me to pen these 9 obvious but often not practiced tips on how to get promoted. Start internalizing these tips and make them part of your career plan. Before you know it, you would have moved up to the next level.One main reason for people to ignore these obvious practices on how to get promoted is because they seem very long term. But they are not at all. All you need to do is to consistently DO them. I have broken them down to 3 main sections: Plan, Attitu
The franchise terms detail a wide array of vital information, including contract renewal stipulations, franchisor and franchisee obligations, territorial considerations, and dispute resolution. Franchise terms may vary widely from one franchise opportunity to another, and it is crucial that the prospective franchisee thoroughly understand and accept the terms of the franchise prior to signing a contract. It is also strongly recommended that the franchisee also have his or her attorney review the UFOC and franchise contract.
The franchisor is also required to provide financial disclosure, including financial, balance, and income statements. Some franchisors may also make available profit and earnings forecasts, although these are not always required.
Although the Uniform Franchise Offering Circular may present itself as an intimidating document, in reality it is a crucial piece of franchise business information that not only protects but also helps franchisees as they take the exciting step of starting and owning a successful franchise business.
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