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.
Mecklenburg County, located in the state of North Carolina, has specific requirements for franchisors to disclose information to potential franchisees in accordance with the Federal Trade Commission's (FTC) Franchise and Business Opportunity Rule. This checklist includes several key matters that must be disclosed to prospective franchisees in order to provide them with relevant and necessary information for making an informed decision. Various types of Mecklenburg North Carolina Checklists Regarding Matters that must be Disclosed to Prospective Franchisee in Accordance with FTC Franchise and Business Opportunity Rule can consist of, but are not limited to: 1. Franchisor's Identity and Business Experience: Provide detailed information about the franchisor's name, address, background, and experience in the industry. 2. Franchise Fee and Other Initial Payments: Clearly state the franchise fee, any additional initial payments required, and outline how they are used. 3. Estimated Initial Investment and Ongoing Costs: Disclose a range of estimated costs for starting and operating the franchise, including equipment, inventory, marketing expenses, and ongoing royalty fees. 4. Financing Options: If the franchisor assists with financing or offers any financial arrangements, provide details about available options, terms, and obligations. 5. Franchisee's Obligations: Explain the franchisee's responsibilities, obligations, and general requirements associated with operating the franchise, including any training or ongoing support provided. 6. Territory: Define the geographic area in which the franchisee will operate and any exclusivity or protected rights granted. 7. Trademarks, Patents, and Proprietary Information: Specify any trademarks, patents, or other proprietary rights granted to the franchisee, as well as any restrictions or limitations on their use. 8. Terms and Conditions of the Franchise Agreement: Outline essential terms and conditions, such as the duration of the franchise agreement, renewal options, termination rights, and transferability provisions. 9. Restrictions on Products or Services: If there are any limitations on the products or services the franchisee can offer, disclose those restrictions. 10. Legal Actions: Disclose any previous or pending legal actions involving the franchisor, its key personnel, or the franchise system. 11. Earnings and Profitability Claims: If the franchisor provides earnings claims or projections, they must be backed by reliable data and disclosed in accordance with FTC guidelines. 12. Current and Former Franchisee Contact Information: Provide a list of both current and former franchisees with their contact information, allowing potential franchisees to research and gather insights about the experience of individuals who have operated the franchise. It is important for franchisors to follow the FTC guidelines and provide accurate, complete, and timely disclosure of these matters to prospective franchisees in Mecklenburg County, North Carolina. This checklist ensures transparency, helping potential franchisees make well-informed decisions before investing in a franchise opportunity.Mecklenburg County, located in the state of North Carolina, has specific requirements for franchisors to disclose information to potential franchisees in accordance with the Federal Trade Commission's (FTC) Franchise and Business Opportunity Rule. This checklist includes several key matters that must be disclosed to prospective franchisees in order to provide them with relevant and necessary information for making an informed decision. Various types of Mecklenburg North Carolina Checklists Regarding Matters that must be Disclosed to Prospective Franchisee in Accordance with FTC Franchise and Business Opportunity Rule can consist of, but are not limited to: 1. Franchisor's Identity and Business Experience: Provide detailed information about the franchisor's name, address, background, and experience in the industry. 2. Franchise Fee and Other Initial Payments: Clearly state the franchise fee, any additional initial payments required, and outline how they are used. 3. Estimated Initial Investment and Ongoing Costs: Disclose a range of estimated costs for starting and operating the franchise, including equipment, inventory, marketing expenses, and ongoing royalty fees. 4. Financing Options: If the franchisor assists with financing or offers any financial arrangements, provide details about available options, terms, and obligations. 5. Franchisee's Obligations: Explain the franchisee's responsibilities, obligations, and general requirements associated with operating the franchise, including any training or ongoing support provided. 6. Territory: Define the geographic area in which the franchisee will operate and any exclusivity or protected rights granted. 7. Trademarks, Patents, and Proprietary Information: Specify any trademarks, patents, or other proprietary rights granted to the franchisee, as well as any restrictions or limitations on their use. 8. Terms and Conditions of the Franchise Agreement: Outline essential terms and conditions, such as the duration of the franchise agreement, renewal options, termination rights, and transferability provisions. 9. Restrictions on Products or Services: If there are any limitations on the products or services the franchisee can offer, disclose those restrictions. 10. Legal Actions: Disclose any previous or pending legal actions involving the franchisor, its key personnel, or the franchise system. 11. Earnings and Profitability Claims: If the franchisor provides earnings claims or projections, they must be backed by reliable data and disclosed in accordance with FTC guidelines. 12. Current and Former Franchisee Contact Information: Provide a list of both current and former franchisees with their contact information, allowing potential franchisees to research and gather insights about the experience of individuals who have operated the franchise. It is important for franchisors to follow the FTC guidelines and provide accurate, complete, and timely disclosure of these matters to prospective franchisees in Mecklenburg County, North Carolina. This checklist ensures transparency, helping potential franchisees make well-informed decisions before investing in a franchise opportunity.
