Let’s Talk Franchising!

Easy Access to Free Franchise Docs

Author: Jim Coen
October 19, 2007
Category: Franchising in general

When researching the web for franchise information, independent information on franchising is difficult to find. Inspired by the lack of objective data, two classmates that attended the same Elementary, Junior High, High School and College in Los Angeles created a tremendous resource for every franchise seekers benefit.

At FREEFranchiseDocs you will find information copies of hundreds of Franchise Agreements and Uniform Franchise Offering Circular, or UFOC related to franchise opportunities.

The UFOC was a response to some unethical behavior in the 1960’s and 1970’s. Today franchises are regulated by law. The Federal Trade Commission (FTC) requires that certain information be disclosed to potential franchisees before a contract can be signed or any payment made. The information is presented to the prospective franchisee in the form of a document — the UFOC.

The UFOC, contains information franchisors must provide to franchisees by law. UFOCs are deemed to be reliable and if the information provided is false, franchisors are subject to civil penalties. However, the FTC does not require filings. There are 13 states that do keep UFOCs on file, and 23 states that require business opportunity disclosure filings.

The UFOC is designed to give prospective franchisees all the information relevant to a franchise offering. It is made up of three basic parts: 23 sections (called Items) describing various aspects of the franchise program; a set of the franchisor’s audited financial statements; and a copy of each form or contract a franchisee is expected to sign if he/she intends to buy the franchise.

The UFOC is similar to a securities prospectus. It can provide the information you need to evaluate a company. An accredited franchise company, whether publicly traded or privately owned, must provide this disclosure document.

The UFOC is most valuable for potential franchisees, potential franchisors, franchisors, investors, financial companies and suppliers to franchisees.

At FREEFranchiseDocs there is a library UFOCs from franchise as well as information on specific franchisors . The site is indexed by company name, contract type and industry.