UFOC
From Wikipedia, the free encyclopedia
UFOC is an abbreviation for "Uniform Franchise Offering Circular", a legal document used in the franchising process in the United States.
Franchisors must give a UFOC to franchisees at least 10 business days before any contract is signed and before any money changes hands. It contains extensive information about a franchisor, which is intended to give potential franchisees enough information to make educated decisions about their investments. The information is divided into 23 categories:
- The Franchisor, its Predecessors and Affiliates
- Identity and Business Experience of Key Persons
- Litigation History
- Bankruptcy
- Initial Franchise Fee
- Other Fees and Expenses
- Franchisee's Initial Investment
- Restrictions on Sources of Products and Services
- Obligations of the Franchisee
- Financing Arrangements
- Obligations of the Franchisor
- Territory
- Trademarks
- Patents and Copyrights
- Obligation of the Franchisee to Participate in the Actual Operation of the Franchise Business
- Restrictions on Goods and Services Offered by the Franchisee
- Renewal, Termination, Repurchase, Modification and/or Transfer of the Franchise Agreement
- Public Figures
- Earnings Claims
- List of Franchise Outlets
- Financial Statements
- Contracts
- Acknowledgment of Receipt
