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Checklist Regarding Matters that must be Disclosed to Prospective...

Broward Florida Checklist Regarding Matters that must be Disclosed to Prospective Franchisee in Accordance with FTC Franchise and Business Opportunity Rule

Name: Broward Florida Checklist Regarding Matters that must be Disclosed to Prospective Franchisee in Accordance with FTC Franchise and Business Opportunity Rule
Brand: US Legal Forms
Rating: 4.82 (257 reviews)

Category:

Small Business - Checklists

State:

Multi-State

County:

Broward

Control #:

US-02909BG

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Instant download

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A franchise or business opportunity seller must give the prospective buyer a detailed disclosure document at least ten (10) business days before the buyer pays any money or legally commit himself to a purchase. The disclosure document includes:

" Names, addresses, and telephone numbers of at least 10 previous purchasers who live closest to the buyer; " A fully audited financial statement of the seller; " Background and experience of the business's key executives; " Cost of starting and maintaining the business; and " The responsibilities buyer and the seller will have to each other once the buyer has invested in the opportunity.

Franchise sellers also must tell a prospective buyer in writing the number and percentage of owners who have failed.

3.8.3 PREVIOUS CONVICTION OF OFFENSE FOR W...

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How to fill out Broward Florida Checklist Regarding Matters That Must Be Disclosed To Prospective Franchisee In Accordance With FTC Franchise And Business Opportunity Rule?

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The Federal Trade Commission (FTC) "Franchise Rule" governs franchising in the United States, and requires that franchisors have certain legal documents in order to offer a franchise: the Franchise Disclosure Document (FDD), and the Franchise Agreement.

A Franchise Disclosure Document includes 23 specific pieces of information (called items), the franchisors franchise agreement, and various exhibits (like a list of current and past franchisees, and audit financials of the franchisor.

The amended Rule requires franchisors to disclose on the Item 23 receipt page the name, principal business address, and telephone number of each franchise seller offering the franchise. Who is a franchise seller for purposes of this disclosure?

The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees.

The FDD outlines comprehensive information about the roles of both parties involved in the franchisethe franchisor and the franchiseeand is designed to enable the potential franchisee to make an honest and informed decision about their investment into the business.

The 23 Required Items The Franchisor and any Parents, Predecessors, and Affiliates.Business Experience.Litigation.Bankruptcy.Initial Fees.Other Fees.Estimated Initial Investment.Restrictions on Sources of Products and Services.

In short, a business arrangement meets the FTC Rule definition of a franchise if the business arrangement involves: (i) the grant of a trademark, (ii) the franchisor exerts or has the authority to exert significant control or assistance over the operation of the business, and (iii) the franchisee pays the franchisor or

The 5 Elements of a Successful Franchise Powerful business systems. A franchise without a business system isn't a franchise.Serious brand power.Innovation.Powerful franchisee training.Wealthy franchisees.

Overview of the relationship: This includes the parties to the contract, the ownership of IP, and the overall obligations of the franchisee to operate its business to brand standards.

The Franchise Disclosure Document contains categories of information about the franchise's operations such as required fees, basic investment, bankruptcy and litigation history of the company, how long the franchise will be in effect, a financial statement of the franchisor, and earnings claims.

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If you sign an agreement for a third or more franchise business, a manger representative of franchisee must attend and successfully complete the Muhi. Read Lady of America Franchise Corporation v.

Broward Florida Checklist Regarding Matters that must be Disclosed to Prospective Franchisee in Accordance with FTC Franchise and Business Opportunity Rule

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What sort of disclosure document is required by the FTC Rule?

What must a disclosure statement include in a franchise agreement?

What disclosure under the franchise rule must be made before parties enter into a valid franchise agreement?

What are the basic requirements of the Franchise Rule?

What is in a Franchise Disclosure Document?

What are the key items in the disclosure document?

What are the three elements of FTC Franchise Rule definition a franchise?

What are the elements of a franchise?

What 3 things are typically included in a franchise agreement?

What sort of disclosure document is required by the FTC?

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What is the Broward Checklist regarding matters that must be disclosed to a prospective franchisee?

Why is the Broward Checklist important?

What are some of the matters that must be disclosed according to the FTC Franchise and Business Opportunity Rule?

What is the purpose of disclosing financial performance representations?

Why is it essential to know the litigation history of a franchisor?

What happens if a franchisor fails to disclose the required information on the Broward Checklist?

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