Franchisee Obligations
The UFOC contains information regarding the franchisee’s obligations to buy or lease from the franchisor or a supplier designated by the franchisor. The franchisor must also disclose any revenues or other benefits it received as a result of any required purchases or leases. Don’t forget that there are many costs not paid by the franchisor. Be sure to include these in your financial estimates.

Make sure you understand the circumstances under which you and your family members may be held personally liable. Under what circumstances will you be personally liable when a customer, vendor or other person sues? Who will be responsible for the various obligations under the contract? Are there restrictions on other activities of the franchisee and his/her family members with regard to ownership, employment, participation in competitive businesses, etc? Do certain restrictions conflict with any current or foreseeable business interests of the franchisee or family members?

Franchisor Obligations
The franchisor’s obligations lie in many different areas, such as obligations prior to the business opening, obligations during the term of the franchise agreement, obligations relating to site location, obligations to provide a training program, and an estimate of the length of time needed to open a center following the signing of a franchise agreement or the payment of a fee to the franchisor.

Ask if there is an operations manual. If so, read it carefully. It will tell you what standards of operation the franchisor expects of the franchisees. You may have to sign an agreement to keep the contents of the manual confidential. Does the manual provide for all aspects of the business? Does it contain an accounting or inventory system? If any of the systems are computerized, is the cost of the computer included in the amounts paid to the franchisor as part of the initial franchise fee?

Find out what training you will receive. Will you learn by hands-on experience at another franchise outlet? If so, how long will you be expected to work there? Will you be paid? Are you the only one who will be trained or will any employees be trained as well? Is there a course? How long is it? What type of ongoing training, management assistance and advice will you receive if and when problems arise? The amount of training you will need will depend on your present business knowledge and experience and on the operating standards you will be expected to keep.

Source: New York State Office of Attorney General