Big Changes Coming in Franchise UFOC Meet the FDD
Big Changes Coming in Franchise UFOC Meet the FDD
Now let’s see some of thechanges in the new document:
• The first important change is the name itself. From UFOC it is becoming FDD (Franchise Disclosure Document).
• The condition that the franchisor and franchisee have to meet face to face before handling the latter the UFOC has been scrapped.
• The UFOC was supposed to be given 10 business days prior to any signing of deal and exchange of money. The new one makes it 14 calendar days.
• A very important change is the mode of delivery of the new FDD. It can be given out through electronic media.
• Similarly, the receipt a would-be franchisee sends back can also be electronically signed.
• The company history will also include information of the main parent company that is anyhow related to the franchise system.
• There won’t be any list of franchise-brokers the franchisor is associated with.
• The financial and other history of the people, whether they are management staffs or not, associated with the selling or dealing of the franchise have to be disclosed.
• Litigation history between the franchisor and the franchisees need to be stated.
• Mentioning the supplier’s name in whose company an employee of the franchisor is involved in one way or another is mandatory.
• If the franchisor is not going to provide any exclusive territory in the franchise agreement, then a warning notice has to be given in the relevant section.
Big Changes Coming in Franchise UFOC Meet the FDD - To learn more about this author, visit Michael Hemenway's Website.
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The franchise industry is going through a period of makeover. The federal agency FTC is laying down new rules regarding the franchisor-franchisee relationship. The changes are going to be placed in the UFOC, the first document that the franchisors give to the prospective franchisees who come in response to their franchise business for sale offers. The document will make the person seeking to buy a franchise aware of everything about the company. There will be information about the company-background, the management system and other existing franchisees. Besides, the UFOC will also tell the would-be franchisees about the cost of starting that franchise business and the support system of the franchisor. According to the new ruling, the new format of the franchise disclosure is supposed to be implemented from July of this year onwards.
Now let’s see some of thechanges in the new document:
• The first important change is the name itself. From UFOC it is becoming FDD (Franchise Disclosure Document).
• The condition that the franchisor and franchisee have to meet face to face before handling the latter the UFOC has been scrapped.
• The UFOC was supposed to be given 10 business days prior to any signing of deal and exchange of money. The new one makes it 14 calendar days.
• A very important change is the mode of delivery of the new FDD. It can be given out through electronic media.
• Similarly, the receipt a would-be franchisee sends back can also be electronically signed.
• The company history will also include information of the main parent company that is anyhow related to the franchise system.
• There won’t be any list of franchise-brokers the franchisor is associated with.
• The financial and other history of the people, whether they are management staffs or not, associated with the selling or dealing of the franchise have to be disclosed.
• Litigation history between the franchisor and the franchisees need to be stated.
• Mentioning the supplier’s name in whose company an employee of the franchisor is involved in one way or another is mandatory.
• If the franchisor is not going to provide any exclusive territory in the franchise agreement, then a warning notice has to be given in the relevant section.
Big Changes Coming in Franchise UFOC Meet the FDD - To learn more about this author, visit Michael Hemenway's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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