Intro to Franchising (B/W)

Restriction on goods and services offered. This section describes any restrictions placed on the
goods or services offered, including: 
• required quality standards
• approved suppliers 
• approved advertising 
• hours of operation
• pricing 
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Renewal, termination and transfer of franchise agreement. This section includes:
• the rights and obligations of a franchisee upon termination 
• descriptions about the transfer of the franchise agreement
• descriptions about the renewal of the franchise agreement
Make sure you hire an experienced 
franchise attorney to review the agreement!
WHAT INFORMATION IS FOUND IN THE DISCLOSURE DOCUMENT
(UFOC)?
The purpose of the UFOC is to provide prospective franchisees with information about the franchisor, the
franchise system and the agreements they will need to sign so that they can make an informed decision.
The Disclosure Document (UFOC)
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Item 1: The franchisor, its predecessor and affiliate. This section provides a description of the
company.

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THE IFA EDUCATIONAL FOUNDATION
An Introduction To Franchising
19
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Item 2: Business experience. This section provides biographical and professional information
about the franchisors and its officers, directors and executives.
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Item 3: Litigation. This section provides relevant current and past criminal and civil litigation for the
franchisor and its management.
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Item 4: Bankruptcy. This section provides information about the franchisor and any management
who have gone through a bankruptcy.
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Item 5: Initial franchise fee. This section provides information about the initial fees and the range
and factors that determine the amount of the fees.
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