The Franchise Offering Circular Indiana

Prior to the 60s, there was little franchising momentum in the US. However after the success of McDonald's, many other companies began to franchise their concepts and the franchise industry expanded rapidly. In 1979 the Federal Trade Commission's FTC Rule became effective. This rule required all franchisors submit to all potential franchisees a document called the Uniform Franchise Offering Circular (UFOC). The purpose of the FTC Rule (manifested in the UFOC) was to provide enough information so the prospective franchisee could make an informed decision about purchasing the franchise.


1. Local Companies

Penn Station East Coast Subs
317 554 6360
1800 N. Meridian
Indianapolis, IN
Sell 4 Free Real Estate Systems Inc
(317) 594-0300
10412 Allisonville Rd
Fishers, IN
Ammark Corporation
(317) 846-1216
10 W Main St
Carmel, IN
Cica Corp
(317) 596-3030
7400 N Shadeland Ave
Indianapolis, IN
Franchise For You Consulting
(317) 849-1648
5136 E 74th Pl
Indianapolis, IN
Entrepreneur's Source
(260) 459-3185
Fort Wayne, IN
Rfc Franchising Inc
(317) 786-3000
5222 S East St
Indianapolis, IN
Epic Systems Inc
(812) 428-7750
402 E Maryland St
Evansville, IN


2. History of the UFOC

Prior to the 60s, there was little franchising momentum in the US. However after the success of McDonald’s, many other companies began to franchise their concepts and the franchise industry expanded rapidly. In 1979 the Federal Trade Commission’s FTC Rule became effective. This rule required all franchisors submit to all potential franchisees a document called the Uniform Franchise Offering Circular (UFOC). The purpose of the FTC Rule (manifested in the UFOC) was to provide enough information so the prospective franchisee could make an informed decision about purchasing the franchise.

The UFOC serves as a protection for the individual against making a decision based on information not supported by fact. The FTC Rule requires franchisors provide the UFOC to the prospective franchisee at the earlier of the first personal meeting or 10 business days before the franchisee signs an agreement or pays any money. It also provides that the franchise agreement must be given to the prospective franchisee at least five business days before the franchisee signs any agreement or pays any money. A franchisor’s UFOC must be updated on an annual basis, or sooner if certain conditions are met.

3. UFOC Items

  • History and Experience. The franchisor must provide you with a history of their past activities, especially as it may relate to potentially negative information. This information must be provided not only for the company itself but also for the officers and directors. The information includes factors like the business experience of the company and its principles and any fairly recent litigation or bankruptcy history for either.

  • Financial Factors. The company must disclose to you the relevant financial terms of the franchise opportunity. This would include the initial franchise fees, other startup costs, and an investment range estimate for your total cost to get into the business. The UFOC must also disclose any other fees, such as the royalty, marketing and renewal fees that the franchisee will have to pay throughout the life of their franchise.

  • Obligations and Restrictions. The company must disclose the obligations of both you and the company under the terms of the franchise agreement. They must also spell out any mandated restrictions that you will operate under in terms of your purchasing options and behavior as a franchisee.

  • Other Considerations. The company must also disclose relevant information on a number of other factors such as financing programs, territory, trademarks and patents, renewal or transfer provisions and public figures.

  • Exhibits. The company must also provide other data including audited financial statements, current franchisee lists with contact information, contracts and receipts.

  • Earnings Claims. FTC rules leave it up to the franchisor whether they want to supply information about the earnings that can be achieved in their business. If a franchisor does want to provide earnings claims, they must follow stringent rules on how this information can be given to a prospective franchisee. It is essential for the franchisor to make sure that the data provided is as accurate and representative as possible and they must also clearly label any assumptions or qualifications on the data provided. As a result, earnings claims can take a variety of angles and approaches, so reviewing the background information is vital.
  • 4. Individual State Requirements

    In addition to the laws that mandate disclosure, there are also some states that have passed specific laws to further protect franchisees in that state. These laws may add additional disclosures or rules about franchise agreement terms. As an example of this, there are a number of states that require that the legal venue for any dispute must be in their state rather than in the state where the franchise company is located. These types of additional requirements vary from state to state but any that are appropriate to your situation in your state should be disclosed in the UFOC you receive.

    5. Featured Local Company

    Penn Station East Coast Subs

    317 554 6360
    1800 N. Meridian
    Indianapolis, IN
    http://penn-station.com/franchising

    Related Articles
    - Restaurant Franchise Indiana
    Restaurant franchises include everything from fast food restaurants to upscale chain restaurants. Buying a restaurant franchise can be a great way to get into the restaurant business without having to start from the ground up, and this website provides a great starting point for getting started.
    - Becoming a Successful Franchise Owner Indiana
    - What to do before you begin searching for a franchise Indiana
    - Franchise Financing Programs Indiana
    - How Much Money Can You Make as a Franchisee? Indiana
    - Seven Sure Steps to Choosing a Franchise Indiana
    - Franchise Information Sources Indiana
    - Ask These Money Questions Before You Buy a Franchise Indiana
    - Automotive Franchises Indiana
    - Business Opportunity or Franchising? Indiana
    Regional Articles
    - The Franchise Offering Circular Anderson IN
    - The Franchise Offering Circular Angola IN
    - The Franchise Offering Circular Bedford IN
    - The Franchise Offering Circular Bloomington IN
    - The Franchise Offering Circular Brazil IN
    - The Franchise Offering Circular Brownsburg IN
    - The Franchise Offering Circular Carmel IN
    - The Franchise Offering Circular Chesterton IN
    - The Franchise Offering Circular Columbia City IN
    - The Franchise Offering Circular Columbus IN
    - The Franchise Offering Circular Connersville IN
    - The Franchise Offering Circular Crawfordsville IN
    - The Franchise Offering Circular Crown Point IN
    - The Franchise Offering Circular Dyer IN
    - The Franchise Offering Circular East Chicago IN
    - The Franchise Offering Circular Elkhart IN
    - The Franchise Offering Circular Evansville IN
    - The Franchise Offering Circular Fishers IN
    - The Franchise Offering Circular Fort Wayne IN
    - The Franchise Offering Circular Franklin IN
    - The Franchise Offering Circular Gary IN
    - The Franchise Offering Circular Goshen IN
    - The Franchise Offering Circular Granger IN
    - The Franchise Offering Circular Greenfield IN
    - The Franchise Offering Circular Greenwood IN
    - The Franchise Offering Circular Hammond IN
    - The Franchise Offering Circular Hobart IN
    - The Franchise Offering Circular Huntington IN
    - The Franchise Offering Circular Indianapolis IN
    - The Franchise Offering Circular Jeffersonville IN
    - The Franchise Offering Circular Kendallville IN
    - The Franchise Offering Circular Kokomo IN
    - The Franchise Offering Circular Lafayette IN
    - The Franchise Offering Circular Laporte IN
    - The Franchise Offering Circular Logansport IN
    - The Franchise Offering Circular Marion IN
    - The Franchise Offering Circular Martinsville IN
    - The Franchise Offering Circular Merrillville IN
    - The Franchise Offering Circular Michigan City IN
    - The Franchise Offering Circular Mishawaka IN
    - The Franchise Offering Circular Muncie IN
    - The Franchise Offering Circular Munster IN
    - The Franchise Offering Circular New Albany IN
    - The Franchise Offering Circular New Castle IN
    - The Franchise Offering Circular Newburgh IN
    - The Franchise Offering Circular Noblesville IN
    - The Franchise Offering Circular North Vernon IN
    - The Franchise Offering Circular Peru IN
    - The Franchise Offering Circular Portage IN
    - The Franchise Offering Circular Richmond IN
    - The Franchise Offering Circular Schererville IN
    - The Franchise Offering Circular Seymour IN
    - The Franchise Offering Circular Shelbyville IN
    - The Franchise Offering Circular South Bend IN
    - The Franchise Offering Circular Terre Haute IN
    - The Franchise Offering Circular Valparaiso IN
    - The Franchise Offering Circular Vincennes IN
    - The Franchise Offering Circular Wabash IN
    - The Franchise Offering Circular Warsaw IN
    - The Franchise Offering Circular West Lafayette IN
    - The Franchise Offering Circular Zionsville IN
    Related Articles
    - Business Opportunity or Franchising? Indiana
    There are two effective ways to become a business owner without reinventing the wheel and starting your own business from scratch: buying a business opportunity and being awarded a franchise business. Each has advantages and disadvantages so knowing how each works and how you would fit their model is important before you begin your search for a particular business.
    - Ask These Money Questions Before You Buy a Franchise Indiana
    - How Much Money Can You Make as a Franchisee? Indiana
    - Becoming a Successful Franchise Owner Indiana
    - Seven Sure Steps to Choosing a Franchise Indiana
    - Franchise Information Sources Indiana
    - What to do before you begin searching for a franchise Indiana
    - Automotive Franchises Indiana
    - Restaurant Franchise Indiana
    - Franchise Financing Programs Indiana
    Related Local Events
    How to Select and Buy and Franchise
    Dates: 12/3/2008 - 12/3/2008
    Location: IVY Tech
    Indianapolis IN
    View Details

    Indiana Telecommunications Association's Midwest Telecommunication Exposition
    Dates: 10/7/2008 - 10/9/2008
    Location: Grand Wayne Center
    Fort Wayne IN
    View Details

    How to Select and Buy and Franchise
    Dates: 10/1/2008 - 10/1/2008
    Location: IVY Tech
    Indianapolis IN
    View Details

    International Trade Conference
    Dates: 10/1/2008 - 10/1/2008
    Location: Grand Wayne Center
    Fort Wayne IN
    View Details

    How to Investigate and Buy a Franchise
    Dates: 9/17/2008 - 9/17/2008
    Location:
    Indianapolis IN
    View Details
    Rate Article
         
    Articles Insider

    Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

    Topics:
    Advertising Family Home Services Software
    Business Services Fashion Internet Technology
    Career Financial Services Legal Telecommunications
    Cars Franchise Miscellaneous Trade Shows
    Computer Hardware Health Nightlife Travel
    Construction Holidays Online Database Weddings
    Education Home Appliances Real Estate Resources World History
    Entertainment Home Electronics