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No local laws or government agencies regulate the offer or sale of franchises in Puerto Rico. As a US territory, however, Puerto Rico is generally subject to US laws and regulations, including the Federal Trade Commission Franchise Rule.
All exhibits to the franchise disclosure document must be contained in one PDF document. Only one document can be uploaded. The annual registration filing fee is $400.
Franchises and Business Opportunities A franchise is one type of business opportunity. In Wisconsin, all three elements - a marketing plan, a trademark association, and a franchise fee - must be present if the business opportunity is to be classified as a franchise.
FTC 14-Day Rule: FTC regulations require that you distribute a complete Franchise Disclosure Document (FDD) with exhibits to all prospective franchisees on a date that is on a date that is not less than 14 days prior to the signing of any agreement or the acceptance of any money.
Under the federal franchise laws, at the national level, a franchisor's FDD will automatically expire and require renewal within 120 days of the franchisor's fiscal year end.
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, owner's equity, and cash flows. Contracts: This is where the franchisor outlines the franchise agreement.
Mandatory 14-Day and 7-Day Cooling Off Periods The FDD must be delivered to a prospective franchisee at least 14 calendar days before the franchisee signs any binding agreement or pays any consideration for the franchise.
The franchise disclosure document (FDD) disclosure and waiting period is 14 days from the date the the FDD is delivered to a prospective franchisee and the FDD receipt page is signed.