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SUMMARY

There are two major legal documents involved in the franchising operation. These two documents are (1) the Uniform Franchise Offering Circular (UFOC) and (2) the franchise agreement or contract. These documents are required by the franchise federal disclosure rule and must be presented to the prospective franchisee by the franchisor prior to signing any documents or receiving any monies for the franchise operation.

The franchisor should review their own  UFOC and franchisee agreements, and then ask additional questions to learn about what is actually required in their franchising system. You should work with existing franchisees and ask them serious questions about their operations and profitability.  As you complete your franchisor review, you will be able to further develop your franchise business plan and understand why your franchise opportunity is the best for your franchisees.