Franchise Info: How do I know what must be included in a disclosure document or offering circular?

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The Franchise Rule states what must be disclosed and provides its own disclosure format. It is published in the Code of Federal Regulations, Volume 16, Part 436 (16 CFR § 436), which may be found by link to the following page: www.ftc.gov/ftc/legal.htm. The Commission also permits the use of an alternative disclosure format, called the Uniform Franchise Offering Circular (UFOC), issued by the North American Securities Administrators Association, for Franchise Rule compliance. Guidelines for preparing UFOC disclosures are available from:

North American Securities Administrators Association
750 First Street, Suite 710
Washington, DC 20002
(202) 737-0900
www.nasaa.org/Industry___Regulatory_Resources/Uniform_Forms/

Franchisors who use the UFOC must follow these guidelines to comply with the Franchise Rule.

You can also find the current state and federal guidelines in the Business Franchise Guide, published by Commerce Clearing House, Inc., in many law libraries.

Source FTC

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Franchise Info: How do I know what must be included in a disclosure document or offering circular?

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