Franchise agreements are binding and, once signed, will present long-term implications for both your business and family. If you are considering the purchase of a Franchise and you are involved in the negotiation of a Franchise Agreement , then here are some basic "ground rules" that you should be aware of respecting the delivery of the Franchisors FDD:
Prior to accepting any deposit or negotiating the purchase of a Franchise, as a prospective Franchisee, the Franchisor must provide you with a current copy of the Franchisor's Franchise Disclosure Document (FDD). The FDD must be delivered at least 14 days prior to your payment of any fee or signing any deposit. However, when negotiating changes to your Franchise Agreement especially changes driven by the Franchisor, be aware that under the Federal Franchise Rule, franchisors are required to provide prospective franchisees with a mandatory seven (7) day period to review the revised franchise agreement. The additional seven (7) day review period is geared toward "material changes" and not administrative "fill in the blank" type changes involving things such as dates and names.
Category: Franchisee Services
The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to be current and to be accurate. The content of this website is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
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