FRANCHISE LAW SOURCE MANAGES YOUR UFOC PRODUCTION AND DISTRIBUTION

The FTC Franchise Rule requires that your Uniform Franchise Offering Circular be provided to prospective franchisees before the first personal meeting between your representatives and the prospect for the purpose of discussing the sale of a franchise, or ten days before the execution of the franchise agreement, whichever is earlier. The complicated rules for determining the time for making disclosures is one of the major sources of mistakes and regulatory non-compliance by franchise companies in the franchise sales process.

The other major source of mistakes and legal violations in the franchise sales process is the distribution of a UFOC that may be outdated or contain obsolete or inaccurate information. Keeping track of the changes in a company’s UFOC over time and making sure that the current version is used at all times is a difficult task. Furthermore, the franchisor must be careful to provide customized disclosures to prospects in certain states where regulations differ from the Uniform Franchise Offering Circular format.

Understand the Major Sources of Franchisee Claims
Failure to make timely disclosure and the use of inaccurate or obsolete disclosure materials, provide plaintiffs’ lawyers with the bulk of the claims that they file against franchisors.

In order to avoid and defeat these sorts of claims, a franchisor must have a system in place for making accurate and timely disclosure to all prospective franchisees. They must also maintain an accurate record keeping system that allows them to prove when and how proper disclosure was made.

Set Up a Turn Key System for Timely and Accurate Disclosure
At Scott C. Kern, Attorney at Law, LLC, in addition to drafting your disclosure documents, we offer a turn key solution to these disclosure pitfalls. Allow us to manage the production and distribution to prospective franchisees of your disclosure materials. We will manage the updates and state-specific disclosures and maintain records of dates of distribution and receipt as well as maintaining signature receipts from all prospects disclosed pursuant to your instructions. Our program will provide you with complete electronic files of all disclosures and records of disclosure and receipts.

We provided clients with electronic access to disclosure files on a current basis, providing real time access to electronically imaged files combined with the knowledge that the records are updated and accurate but without the overhead of a paraprofessional staff in house.

We provide these UFOC production and management services either on a subscription basis or for a per transaction charge.

Home | Solutions for Existing Franchisors| Solutions for the New Franchisor | Contact
Solutions for the Prospective Franchisee | About the Firm | Resources | Attorney Profiles