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Uniform Franchise Offering Circular

 
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BigTop

posts: 15

Dec 27, 2006 10:15 PM ET    Quote  Report Abuse
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My wife is looking at a home-based business that happens to be a franchise.  She talked to the regional manager (herself a franchisee) who praised the company.  My wife was then referred by her to the corporate HQ.   She emailed the company and requested information and a copy of the UFOC.  The company told her she would have to pay a $90 information fee to receive this.    Is this a common practice among franchisors?

Thanks,
-Top
BigTop2006-12-27 22:20:37
ElidS

posts: 471

Dec 28, 2006 10:56 AM ET    Quote  Report Abuse
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http://www.ftc.gov/bcp/franchise/faq1.htm

1. Where can I get a company`s pre-sale disclosure document?

The Franchise Rule requires franchise and business opportunity sellers to provide to prospective purchasers a disclosure document or franchise offering circular. The FTC does not require filings of these documents, so we are unable to provide copies to consumers. A total of 13 states keep franchise offering circulars on file, and 26 states require business opportunity disclosure filings. Most states provide copies of these disclosures, usually by allowing visitors to their offices by appointment to review or copy the documents.

A few private companies may make franchise disclosure documents filed in one or more states available for a fee. The FTC doesn’t support or endorse these companies:

 
You can follow the links to some of these companies on that page, I would assume that your wife is not talking to the Franchisor but one of these second tier companies.
BigTop

posts: 15

Jan 01, 2007 7:24 PM ET    Quote  Report Abuse
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Actually it is the company itself, and not a third-party.  I think your post sums it up with "A few private companies may make franchise disclosure documents filed in one or more states available for a fee. The FTC doesn’t support or endorse these companies".  I`ll have my wife search elsewhere.
RSchlieper

posts: 323

Jan 02, 2007 4:01 PM ET    Quote  Report Abuse
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Try this Franchise.  It`s FREE to sign up (never pay) to access our Success Guide.  We also have affiliate programs that one can sign up for a Trial Period (do not have to upgrade, ever) but this is where we make our monies.

Again, free to sign up!

RSchlieper (Ron)



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AnneH

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May 19, 2008 9:53 PM ET    Quote  Report Abuse
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Paying for the UFOC is NOT common practice at all.  Seems like your wife may be getting into something she wont want to be involved in.
 
I bought a franchise several years ago.  Before I bought it, I checked into literally dozens of franchises and got UFOC on them.  I also physically visited a number at their headquarters.
 
There`s tons and tons of franchises available, just don`t ever pay for a UFOC if you decide to get involved in one.
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