Item 6 Table
OTHER FEES
Column 1 Type of fee | Column 2 Amount | Column 3 Due Date | Column 4 Remarks |
Item 7 Table:
YOUR ESTIMATED INITIAL INVESTMENT
Column 1 Type of expenditure | Column 2 Amount | Column 3 Method of payment | Column 4 When due | Column 4 To whom payment is to be made |
Total. |
Item 9 Table:
FRANCHISEE'S OBLIGATIONS
Obligation | Section in agreement | Disclosure document item |
a. Site selection and acquisition/lease | ||
b. Pre-opening purchase/leases | ||
c. Site development and other pre-opening requirements | ||
d. Initial and ongoing training | ||
e. Opening | ||
f. Fees | ||
g. Compliance with standards and policies/operating manual | ||
h. Trademarks and proprietary information | ||
i. Restrictions on products/services offered | ||
j. Warranty and customer service requirements | ||
k. Territorial development and sales quotas | ||
l. Ongoing product/service purchases | ||
m. Maintenance, appearance, and remodeling requirements | ||
n. Insurance | ||
o. Advertising | ||
p. Indemnification | ||
q. Owner's participation/management/staffing | ||
r. Records and reports | ||
s. Inspections and audits | ||
t. Transfer | ||
u. Renewal | ||
v. Post-termination obligations | ||
w. Non-competition covenants | ||
x. Dispute resolution | ||
y. Other (describe) |
Item 11 Table
TRAINING PROGRAM
Column 1 Subject | Column 2 Hours of Classroom Training | Column 3 Hours of On-The-Job Training | Column 4 Location |
Item 17 Table:
THE FRANCHISE RELATIONSHIP
Provision | Section in franchise or other agreement | Summary |
a. Length of the franchise term | ||
b. Renewal or extension of the term | ||
c. Requirements for franchisee to renew or extend | ||
d. Termination by franchisee | ||
e. Termination by franchisor without cause | ||
f. Termination by franchisor with cause | ||
g. "Cause" defined-curable defaults | ||
h. "Cause" defined-non-curable defaults | ||
i. Franchisee's obligations on termination/non-renewal | ||
j. Assignment of contract by franchisor | ||
k. "Transfer" by franchisee-defined | ||
l. Franchisor approval of transfer by franchisee | ||
m. Conditions for franchisor approval of transfer | ||
n. Franchisor's right of first refusal to acquire franchisee's business | ||
o. Franchisor's option to purchase franchisee's business | ||
p. Death or disability of franchisee | ||
q. Non-competition covenants during the term of the franchise | ||
r. Non-competition covenants after the franchise is terminated or expires | ||
s. Modification of the agreement | ||
t. Integration/merger clause | ||
u. Dispute resolution by arbitration or mediation | ||
v. Choice of forum | ||
w. Choice of law |
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting [name, address, and telephone number], the Federal Trade Commission, and the appropriate state regulatory agencies.
Item 20 Table No. 1
Systemwide Outlet Summary
Column 1 Outlet Type | Column 2 Year | Column 3 Outlets at the Start of the Year | Column 4 Outlets at the End of the Year | Column 5 Net Change |
Franchised | 2004 | |||
2005 | ||||
2006 | ||||
Company-Owned | 2004 | |||
2005 | ||||
2006 | ||||
Total Outlets | 2004 | |||
2005 | ||||
2006 |
Item 20 Table No. 2
Transfers of Outlets from Franchisees to New Owners (other than the Franchisor)
Column 1 State | Column 2 Year | Column 3 Number of Transfers |
2004 | ||
2005 | ||
2006 | ||
2004 | ||
2005 | ||
2006 | ||
Total | 2004 | |
2005 | ||
2006 |
Item 20 Table No. 3
Status of Franchised Outlets
Column 1 State | Column 2 Year | Column 3 Outlets at Start of Year | Column 4 Outlets Opened | Column 5 Terminations | Column 6 Non-Renewals | Column 7 Reacquired by Franchisor | Column 8 Ceased Operations-Other Reasons | Column 9 Outlets at End of the Year |
2004 | ||||||||
2005 | ||||||||
2006 | ||||||||
2004 | ||||||||
2005 | ||||||||
2006 | ||||||||
Totals | 2004 | |||||||
2005 | ||||||||
2006 |
Item 20 Table No. 4
Status of Company-Owned Outlets
Column 1 State | Column 2 Year | Column 3 Outlets at Start of Year | Column 4 Outlets Opened | Column 5 Outlets Reacquired From Franchisee | Column 6 Outlets Closed | Column 7 Outlets Sold to Franchisee | Column 8 Outlets at End of the Year |
2004 | |||||||
2005 | |||||||
2006 | |||||||
2004 | |||||||
2005 | |||||||
2006 | |||||||
Totals | 2004 | ||||||
2005 | |||||||
2006 |
Item 20 Table No. 5
Projected Openings As Of [Last Day of Last Fiscal Year]
Column 1 State | Column 2 Franchise Agreements Signed But Outlet Not Opened | Column 3 Projected New Franchised Outlet In The Next Fiscal Year | Column 4 Projected New Company-Owned Outlet In the Next Fiscal Year |
Total |
(i) The franchisor' first partial or full fiscal year selling franchises. | An unaudited opening balance sheet. |
(ii) The franchisor' second fiscal year selling franchises. | Audited balance sheet opinion as of the end of the first partial or full fiscal year selling franchises. |
(iii) The franchisor' third and subsequent fiscal years selling franchises. | All required financial statements for the previous fiscal year, plus any previously disclosed audited statements that still must be disclosed according to paragraphs (u)(1)(i) and (ii) of this section. |
RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.
If [name of franchisor] offers you a franchise, it must provide this disclosure document to you 14 calendar-days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
If [name of franchisor] does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and [state agency].
I received a disclosure document dated __________ that included the following Exhibits:
16 C.F.R. §436.5