Uniform Franchise Offering Circular
What is the Uniform Franchise Offering Circular?
The UFOC (Uniform Franchise Offering Circular), is the greatest key to proper due diligence. It's the disclosure document required by the FTC to be prepared by all franchisors. It's designed to help prospective franchisees with providing specific information about the franchise being researched, and its management/owners.
The UFOC is routinely given to prospective franchisees by the franchisor once the franchisor is satisfied that the prospect is qualified (at least financially) to purchase the franchise.
Of great importance is the fact that the UFOC contains a listing of all current (and recently departed) franchisees. This is important because the prospect can contact as many franchisees as desired to get their opinion on the franchise as a business opportunity and the franchisor's performance.
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