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.
Oakland, Michigan is a county located in the state of Michigan, USA. It is known for its diverse communities, vibrant arts scene, and numerous recreational activities. When it comes to franchising opportunities in Oakland, Michigan, there are certain matters that must be disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule. It is important for both prospective franchisees and franchisors to understand and adhere to these guidelines in order to ensure a transparent and fair business relationship. Here is a detailed checklist regarding matters that must be disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule: 1. Franchise Costs and Fees: Franchisors should clearly outline all initial costs, ongoing fees, and any other financial obligations required of the franchisee. This includes initial franchise fees, royalty payments, advertising fees, and any additional expenses that may be incurred. 2. Territory and Competition: Franchisees should be provided with information regarding the exclusivity of their territory and any potential competition from other franchisees or from the franchisor itself. This includes details about any geographic restrictions and how the franchisor plans to support and protect the franchisee's market. 3. Training and Support: Franchisors must disclose the type and extent of training programs available to franchisees. This includes initial training, ongoing support, and access to operational manuals or resources that will aid in the successful operation of the franchise. 4. Franchise Agreement and Term: Franchisees must be provided with a copy of the franchise agreement and information regarding its duration, renewal options, and conditions for termination or transfer of the franchise. Any restrictions or limitations on the franchisee's ability to sell or transfer the business should also be disclosed. 5. Financial Performance Representations: Franchisors are required to disclose any information regarding the actual or potential financial performance of the franchise. This may include historical sales data, average sales figures, or other relevant financial information, based on a reasonable basis and outlined in the franchise disclosure document. 6. Litigation or Bankruptcy History: Franchisors must disclose any past or pending litigation, including lawsuits or disputes involving the franchisor, its officers, or other franchisees. Additionally, any bankruptcy filings by the franchisor in the past ten years should be disclosed. These are some of the main areas that must be addressed in the Oakland, Michigan checklist regarding matters that must be disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule. It is crucial for both parties to thoroughly review and understand these disclosures in order to make informed decisions and ensure a successful franchising relationship. (Note: As there is only one Oakland, Michigan, there are no different types of checklists specific to this location.)Oakland, Michigan is a county located in the state of Michigan, USA. It is known for its diverse communities, vibrant arts scene, and numerous recreational activities. When it comes to franchising opportunities in Oakland, Michigan, there are certain matters that must be disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule. It is important for both prospective franchisees and franchisors to understand and adhere to these guidelines in order to ensure a transparent and fair business relationship. Here is a detailed checklist regarding matters that must be disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule: 1. Franchise Costs and Fees: Franchisors should clearly outline all initial costs, ongoing fees, and any other financial obligations required of the franchisee. This includes initial franchise fees, royalty payments, advertising fees, and any additional expenses that may be incurred. 2. Territory and Competition: Franchisees should be provided with information regarding the exclusivity of their territory and any potential competition from other franchisees or from the franchisor itself. This includes details about any geographic restrictions and how the franchisor plans to support and protect the franchisee's market. 3. Training and Support: Franchisors must disclose the type and extent of training programs available to franchisees. This includes initial training, ongoing support, and access to operational manuals or resources that will aid in the successful operation of the franchise. 4. Franchise Agreement and Term: Franchisees must be provided with a copy of the franchise agreement and information regarding its duration, renewal options, and conditions for termination or transfer of the franchise. Any restrictions or limitations on the franchisee's ability to sell or transfer the business should also be disclosed. 5. Financial Performance Representations: Franchisors are required to disclose any information regarding the actual or potential financial performance of the franchise. This may include historical sales data, average sales figures, or other relevant financial information, based on a reasonable basis and outlined in the franchise disclosure document. 6. Litigation or Bankruptcy History: Franchisors must disclose any past or pending litigation, including lawsuits or disputes involving the franchisor, its officers, or other franchisees. Additionally, any bankruptcy filings by the franchisor in the past ten years should be disclosed. These are some of the main areas that must be addressed in the Oakland, Michigan checklist regarding matters that must be disclosed to prospective franchisees in accordance with the FTC Franchise and Business Opportunity Rule. It is crucial for both parties to thoroughly review and understand these disclosures in order to make informed decisions and ensure a successful franchising relationship. (Note: As there is only one Oakland, Michigan, there are no different types of checklists specific to this location.)
