This franchise disclosure document template has 8 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our franchise disclosure document template:
FRANCHISE DISCLOSURE DOCUMENT [FRANCHISOR NAME AND ADDRESS] This document contains valuable information including intellectual know-how and property knowledge which is confidential and is provided to the recipient on the strict condition that it remains confidential. The information, data and ideas contained in this document remain the property of [NAME OF THE FRANCHISE] unless assigned, in writing, to the recipient. No other use or disclosure of the whole or any part of this document or information may be made by the recipient without the express and written consent of [NAME OF THE FRANCHISE]. Please consider the following points before moving ahead with fulfilling any obligations: This Franchise Disclosure Document contains some of the information you need to make an informed decision about whether to enter into a franchise agreement. Entering into a franchise agreement is a serious undertaking. A franchise agreement is legally binding on you if you sign it. Take your time, read all the documents carefully, talk to other franchisees and assess your own financial resources and capabilities to deal with the requirements of the franchised business. You should make your own inquiries about the franchise and about the business of the franchise. You should get independent legal, accounting and business advice before signing the franchise agreement. It is prudent to prepare a business plan and projections for profit and cash flow. You should also consider educational courses, particularly if you have not operated a business before. THE FRANCHISOR AND ANY PARENTS FRANCHISORS: [NAME OF THE FRANCHISOR] incorporated under the laws of [STATE/PROVINCE], having its registered office at [ADDRESS]. The Franchisor is engaged in the business of [BUSINESS OF THE FRANCHISOR]. FRANCHISEE: We offer franchises for the use of our "[NAME OF THE FRANCHISOR]" trademarks, trade names, service marks and logos ("Marks") for the operation of [NAME OF THE FRANCHISOR] Franchises. The Franchise is operated under a business format per se unique system, including our valuable know-how, information, trade secrets, training methods, Confidential Operations Manual, standards, designs, methods of trademark usage, copyrights, sources and specifications, confidential electronic and other communications, methods of internet usage, marketing programs, and research and development connected with the operation and promotion of [NAME OF THE FRANCHISOR] Franchises ("System"). We reserve the right to change or otherwise modify the System at any time at our sole discretion. You must operate your [NAME OF THE FRANCHISOR] Franchise as per our standard operating practices and sign our standard franchise agreement ("Franchise Agreement"). Your [NAME OF THE FRANCHISOR] Franchise must offer only those services and products that we have authorized. We reserve the right to add, modify, or delete any services or products that you must offer or sell at your [NAME OF THE FRANCHISOR] Franchise at any time at our sole discretion. You must also obtain all necessary permits, licenses and approvals to operate your [NAME OF THE FRANCHISOR] Franchise. BUSINESS EXPERIENCE [SPECIFY THE KEY TEAM MEMBERS AND THEIR ROLES IN THE COMPANY] INITIAL FEES PAID TO THE FRANCHISOR You must pay us an "Initial Franchise Fee" in lump sum in the amount defined below, when you sign the Franchise Agreement for the purchase of the [NAME OF THE FRANCHISOR] Franchise. The initial Franchise fees are as follows: [SPECIFY THE INITIAL FRANCHISE FEE] The initial Franchise fees are payable to [SPECIFY] by direct mail check to [SPECIFY ADDRESS WHICH FRANCHISE FEE IS TO BE PAID TO] by [DATE]. OTHER FEES A royalty shall be charged at the rate of [PERCENTAGE OF THE ROYALTY CHARGED] of gross revenues. Gross revenues are all revenue generated by the [NAME OF THE FRANCHISEE] franchised business operation ("Gross Revenues"). You will be required to pay [PERCENTAGE OF THE ROYALTY CHARGED] of Gross Revenues as soon as you begin operation of your [NAME OF THE FRANCHISEE] franchised business. ESTIMATED INITIAL INVESTMENT TYPE OF EXPENDITURE AMOUNT METHOD OF PAYMENT WHEN DUE TO WHOM THE PAYMENT IS TO BE MADE Initial Franchisee Fees Franchise Starter Package Computer Hardware and Software Licensing Fees Start-up Advertising Expenses FRANCHISEE'S OBLIGATIONS To ensure that the highest degree of quality and service is maintained, the Franchisee shall operate the franchised business in strict conformity with such methods, standards, and specifications as the Franchisor may from time to time prescribe in the Manual or otherwise in writing. The Franchisee agrees: To offer only such services as described in the Franchise Agreement [REFERENCE TO A FRANCHISE AGREEMENT]; to offer such services as the Franchisor may specify from time to time; and to discontinue offering any services in relation to the franchised business which the Franchisor may, in its discretion, disapprove in writing at any time. To refrain from offering or advertising any related services hereunder without the Franchisor's prior written approval. The Franchisee shall immediately notify the Franchisor in writing of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, which may adversely affect the operation or financial condition of the franchised business. The Franchisee shall provide the approved services in the approved location. It shall be the duty of the Franchisee to register their Company, pay accurate taxes and take out required insurances for the business. FRANCHISOR'S OBLIGATIONS The Franchisor's obligations include to: Provide leads on a monthly basis; Manage the regional website, which shall be fully optimized for search engines, thus fully responsive and ready to promote the franchised business of the Franchisee; Provide the Franchisee with branded promotional materials, stationery, and e-mail marketing software; Provide the Franchisee with a professional Franchise Management System (FMS) that shall automate the marketing and keep track of the activities undertaken by the Franchisee; Provide the Franchisee with business documents such as financial planning and forecast spreadsheets, and full marketing and development plans; Appoint an account manager. TRAINING The Franchisee or any person designated by him/her is required to attend three weeks' initial training provided by the Franchisor. The initial training is mandatory for the Franchisee, and the Franchisee shall not start with the operation of the business unless it has undergone the mandatory initial training. The training period may be extended if the Franchisor is not satisfied and deems it necessary that the term shall be extended in order to facilitate the smooth operation of the franchised business. COMPUTER SYSTEM The Franchisee is required to use and operate the Computer System as specified by the Franchisor, the specifications of which are attached in Exhibit A to the present document. TERRITORY You will be granted a territory ("Territory") in which to operate your [NAME OF THE FRANCHISOR] Franchise and to offer the services you are authorized to sell by the Franchise Agreement. Your Territory is based on demographics and other characteristics including population density and average income of the surrounding area, natural boundaries, extent of competition and the amount and size of urban, suburban and rural areas. We will not change your Territory or alter the size of your Territory unless you agree in writing. You may be granted, at our sole discretion, express permission to promote and advertise your [NAME OF THE FRANCHISOR] Facility to customers in an unsold territory adjacent to your Territory ("Adjacent Territory")
