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.
Kings New York, a well-established franchise organization, follows the guidelines set by the Federal Trade Commission (FTC) Franchise and Business Opportunity Rule to provide potential franchisees with transparency and essential information. The Kings New York Checklist Regarding Matters that must be Disclosed to Prospective Franchisee in Accordance with FTC Franchise and Business Opportunity Rule encompasses various essential aspects. Here are the categories of disclosure covered in the checklist: 1. Franchise Fee: — The initial franchise fee required to join Kings New York. — Any ongoing royalties or other fees the franchisee must pay. 2. Start-up Costs: — A breakdown of the estimated costs involved in establishing a Kings New York franchise, including equipment, supplies, and leasehold improvements. 3. Training and Support: — Details about the training programs offered to franchisees. — Information on ongoing support, such as operational training and marketing assistance. 4. Territory: — The geographic area the franchisee will operate within. — Any exclusivity or restrictions on territorial rights imposed by Kings New York. 5. Trademarks and Intellectual Property: — Information on the use of Kings New York's trademarks, trade names, and copyrighted materials. — Any restrictions or limitations regarding the franchisee's use of the brand. 6. Obligations and Restrictions: — The franchisee's obligations regarding operations, quality standards, and customer service. — Any restrictions on the sale or transfer of the franchise. 7. Advertising and Marketing: — Details about national and local advertising efforts. — Any contributions or fees paid by franchisees for advertising purposes. 8. Financial Performance: — If provided, information on the actual or potential sales, costs, and profits of a Kings New York franchise. — Any disclaimers or qualifiers about the financial performance representation. 9. Franchisee's Obligations: — A summary of the franchisee's responsibilities, including those regarding employment, maintenance, and compliance with Kings New York's standards. 10. Renewal, Termination, and Dispute Resolution: — The terms and conditions for franchise renewal. — Grounds for franchise termination and the process involved. — Information on resolving disputes between the franchisor and franchisee. By ensuring that the above elements are disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule, Kings New York emphasizes its commitment to transparency and enables potential franchisees to make informed decisions.Kings New York, a well-established franchise organization, follows the guidelines set by the Federal Trade Commission (FTC) Franchise and Business Opportunity Rule to provide potential franchisees with transparency and essential information. The Kings New York Checklist Regarding Matters that must be Disclosed to Prospective Franchisee in Accordance with FTC Franchise and Business Opportunity Rule encompasses various essential aspects. Here are the categories of disclosure covered in the checklist: 1. Franchise Fee: — The initial franchise fee required to join Kings New York. — Any ongoing royalties or other fees the franchisee must pay. 2. Start-up Costs: — A breakdown of the estimated costs involved in establishing a Kings New York franchise, including equipment, supplies, and leasehold improvements. 3. Training and Support: — Details about the training programs offered to franchisees. — Information on ongoing support, such as operational training and marketing assistance. 4. Territory: — The geographic area the franchisee will operate within. — Any exclusivity or restrictions on territorial rights imposed by Kings New York. 5. Trademarks and Intellectual Property: — Information on the use of Kings New York's trademarks, trade names, and copyrighted materials. — Any restrictions or limitations regarding the franchisee's use of the brand. 6. Obligations and Restrictions: — The franchisee's obligations regarding operations, quality standards, and customer service. — Any restrictions on the sale or transfer of the franchise. 7. Advertising and Marketing: — Details about national and local advertising efforts. — Any contributions or fees paid by franchisees for advertising purposes. 8. Financial Performance: — If provided, information on the actual or potential sales, costs, and profits of a Kings New York franchise. — Any disclaimers or qualifiers about the financial performance representation. 9. Franchisee's Obligations: — A summary of the franchisee's responsibilities, including those regarding employment, maintenance, and compliance with Kings New York's standards. 10. Renewal, Termination, and Dispute Resolution: — The terms and conditions for franchise renewal. — Grounds for franchise termination and the process involved. — Information on resolving disputes between the franchisor and franchisee. By ensuring that the above elements are disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule, Kings New York emphasizes its commitment to transparency and enables potential franchisees to make informed decisions.
