Business For Sale & Franchise Search Engine  
My Account
Search Businesses For Sale


to refine your search results use advanced search  
Franchise Opportunities

Sell Your Business, Starting at $20.99 per month
Small Business Resources > What is a Uniform Franchise Offering Circular (UFOC)?

What is a Uniform Franchise Offering Circular (UFOC)?

What is a Uniform Franchise Offering Circular (UFOC)? This is a document that must be provided by the franchisor to the prospective franchisee at least 10 business days before any agreement of sale is signed and finalized.

What is the importance of this document? Well, it is considered a disclosure statement that covers such items as the Franchisor's obligations, the Franchisee's obligations, territory boundaries, and initial and ongoing fees to be paid. All in all, 23 important subsets of information are included in this comprehensive disclosure statement about the franchise that the franchisee is about to invest in. (See below for a full listing of the information that makes up the document).

Furthermore, since prospective franchisees need to have enough information to be able to compile a business plan for financing purposes, the franchisor must offer sufficient documentation for franchisees to forecast future expenses for the business.

The UFOC is non-negotiable and is written within a consistent or "uniform" set of criteria. Individual states are not afforded the opportunity to change the terms and conditions of a franchise agreement. The only items that have any flexibility are territory location and possibly extreme demographic disadvantages.

Since 1995, the Federal Trade Commission (FTC) has required that this document be written in plain English rather than be full of legal terms that the layman cannot understand. The North American Securities Administrators Associations (NASAA) administers and monitors the UFOC.

Following is a list of the 23 categories included in the UFOC:
  • The Franchisor and Any Predecessors
  • Identity and Business Experience of Persons Associated with Franchisor
  • Litigation History
  • Bankruptcy (any franchisees who may have filed)
  • Listing of the Initial Franchise Fee and Other Initial Payments
  • Other Fees and Expenses
  • Statement of Franchisee's Initial Investment
  • Obligations of Franchisee to Purchase or Lease from Designated Sources
  • Obligations of Franchisee to Purchase or Lease in Accordance with Specifications or from Authorized Suppliers
  • Financing Arrangements
  • Obligations of the Franchisor; Other Supervision, Assistance or Services
  • Exclusive/Designated Area of Territory
  • Trademarks, Service Marks, Trade Names, Logotypes and Commercial Symbols,
  • Patents and Copyrights
  • Obligations of the Franchisee to Participate in the Actual Operation of the Franchise Business
  • Restrictions on Goods and Services Offered by Franchisee
  • Renewal, Termination, Repurchase, Modification and Assignment of the Franchise Agreement and Related Information
  • Arrangements with Public Figures
  • Actual, Average, Projected or Forecasted Franchise Sales, Profits or Earnings
  • Information Regarding Franchises of the Franchisor
  • Financial Statements
  • Contracts
  • Acknowledgement of Receipt by Respective Franchises
Upon receipt of the UFOC, it is essential that the franchisee evaluate the entire document before signing into an agreement. Also, it is important to note that although the document is required by law, it has not necessarily been reviewed for accuracy by a legal body. Therefore, it is highly recommended that a franchise attorney assess the document for accuracy.

If there is any hesitation on the part of the franchisor to provide you with the UFOC, you may wish to consider a different opportunity.

About the Author has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. has thousands of businesses for sale in the US and Canada.

*** You may use this article on your website as long as the "About The Author" box is in place with all links exactly as above and the article or any links in the article are not altered. ***

Related Resources
Buying a Franchise
10 Reasons to Buy a Franchise
Advantages & Disadvantages of Owning a Franchise
Advantages and Disadvantages of a Start-Up Business
Advantages of Investing in a Franchised Business
An Overview of Today's Business Opportunity Market
Auto Franchises
Become a Franchise Consultant
Businesses under $10,000
Buy a Franchise or Create Your Own Start-Up
Buy a Great Franchise Opportunity
Buying A Franchise
Buying a Franchise with Bad Credit
Coffee Franchises
Do Home Based Businesses & Franchises Really Work?
FDD's Item 19 Can Help You Decide If You Should Buy a Franchise
Food Franchises
Franchise Alliance
Franchise Information
Franchise Lawyers
Franchise Loans - Apply for a Loan to Buy a Franchise
Franchise Reviews
Franchise Royalties - What are Franchise Royalties?
Franchises - What To Consider
Free Small Business Magazines
Healthy Fast Food Franchises
House Cleaning Franchises
How Much Does a 7-Eleven Franchise Cost?
How Much Does a Dunkin Donuts Franchise Cost?
How Much Does a Franchise Cost
How Much Does a Krispy Kreme Franchise Cost?
How Much Does a McDonald's Franchise Cost?
How Much Does a Panera Franchise Cost?
How Much Does a Pinkberry Franchise Cost?
How Much Does a Pizza Hut Franchise Cost?
How Much Does a Starbucks Franchise Cost?
How Much Does a Wendy's Franchise Cost?
How to Finance a Franchise
How to Increase your Chances of Owning a Successful Franchise
How to Make More of Your Franchise
Is Franchising For You?
Is Starbucks a Franchise?
Low Cost Business Ideas
Managing Your Franchise Business
Master Franchise Information
Questions to Ask a Franchisor When Buying a Franchise
Reasons to Use a Franchise Consultant
Receive a FREE Franchise Consultation
Sell a Franchise
Seven Secrets to Buying a Franchise
Should I Franchise My Business?
Ten Common Mistakes Made by Franchise Buyers
The Differences Between a Franchise & Business Opportunity
The Differences between Large and Small Franchises
The History of Franchising
Three Signs Of A Franchise Winner
To Franchise or not to Franchise
Top 5 Buying Factors when Buying a Franchise - Part I
Top 5 Buying Factors when Buying a Franchise - Part II
What is a Master Franchise?
What is a Uniform Franchise Offering Circular (UFOC)?
What To Take Into Consideration When Starting A Franchise
What to Think About Before Buying a Franchise
Why Should I Buy a Franchise?
©2024 MH Sub I, LLC dba Internet Brands
Broker Membership | Terms Of Use | Financial Disclaimer | Privacy Policy | Cookie Policy | Resources | Franchise Opportunities | Website Traffic Ranking | Sitemap | Careers | Contact Us | Manage Preferences Your Privacy Choices