What Is A Franchise UFOC?

The Uniform Franchise Offering Circular (UFOC) is a comprehensive document every franchisor is required to process and keep current.  The FTC requires franchisors to give the UFOC to prospects that want to purchase a new or franchise resale from the franchisor. 

The purpose of the UFOC is to give the potential franchisee complete background about the franchise. The UFOC includes detailed information on items such as the franchise’s business history, litigation, bankruptcy, initial franchise fee and other fees, total initial investment required, franchisee’s obligations, franchisor’s obligations, financing, territory, trademarks, patents, copyrights, restrictions, dispute resolution, earnings claims, financial statements, contracts, and more.

Once you narrow your list of franchises down to the ones that interest you the most, be sure to carefully read each franchisor’s UFOC as part of your due diligence process.  What you find in it is often the case for moving forward with the franchisor, or moving on to another franchise opportunity.

About The Author - Peter Siegel,MBA is the founder of BizBen.com and USABizMart.com. A nationally recognized author (3 books and a syndicated small business blog) and expert consultant on buying small to mid-sized businesses, you can reach Peter Siegel at 866-270-6278.

Categories: BizBen Blog Contributor, Franchises For Sale