Download Franchise Disclosure Document for Free

This file is a legal document related to Franchise Disclosure. If you want to disclose your franchise right, you need to go through the legal procedures. This document is helpful to learn about the legal procedures and some tips. Read over it to prepare for the disclosure. Besides, this file also attaches some necessary forms you may use in the process. Download it and review to get some knowledge of the franchise disclosure.

(3.8 based on 474 votes)
(Amended and Restated UFOC Guidelines)
On January 23, 2007, the Federal Trade Commission (“FTC”) adopted a final amended Franchise
Rule (“Amended FTC Franchise Rule”). 16 C.F.R. Part 436. As of July 1, 2008, all franchisors must
prepare and distribute disclosure documents that, at a minimum, comply with the disclosure format of the
Amended FTC Franchise Rule. Under the Amended FTC Franchise Rule, states may impose additional
requirements under state law consistent with the Amended FTC Franchise Rule.
The North American Securities Administrators Association (“NASAA”) has adopted the
disclosure requirements of the Amended FTC Franchise Rule, with minimal additional requirements, as
the successor to the Uniform Franchise Offering Circular Guidelines adopted on April 23, 1994. The
NASAA-adopted Amended FTC Franchise Rule is attached in Part VII. As of July 1, 2008, Franchise
Filing States will only accept for filing Franchise Disclosure Documents prepared under the Amended
FTC Franchise Rule in accordance with the Instructions set forth below. This requirement does not affect
any Franchise Disclosure Document registered by a Franchise Filing State before July 1, 2008 if the
Franchise Disclosure Document otherwise complies with applicable state law and the Amended FTC
Rule. These NASAA Franchise Registration and Disclosure Guidelines replace the NASAA Uniform
Franchise Offering Circular Guidelines as of July 1, 2008.
I. Franchise Filing States
The “Franchise Filing States” are the states that have adopted these NASAA Guidelines.
II. Uniform Franchise Registration Application
A. Forms
In order to register a franchise in the Franchise Filing States, the following application documents
must be used by a franchisor if and as required by the state:
1. Uniform Franchise Registration Application (Form A);
2. Franchisor’s Costs and Sources of Funds (Form B);
3. Uniform Franchise Consent to Service of Process (Form C);
4. Franchise Seller Disclosure Form (Form D);
5. Franchise Disclosure Document (see Part III below);
6. Application Fee (varies by Franchise Filing State);
7. Guarantee of Performance (if required) (Form E);
8. Consent of Accountant (or a photocopy of the consent) to the use of the latest
audit report in the Franchise Disclosure Document (Form F); and
9. Advertising or promotional materials (if required by the Franchise Filing State).
Copies of Forms A, B, C, D, E and F are attached in Part V. Instructions for preparation
immediately follow each Form.
Franchise Disclosure Document
 1 / 74 >