Figuring Out the Terms of Your Franchise (Part B)

What terms will I establish in my FDD/UFOC?

In your FDD/UFOC, you will establish terms such as:

  • The initial franchise fee and other fees - In items 5 and 6 of the FDD/UFOC, you will summarize the initial franchise fee that you require, any ongoing royalty fees, and any other fees that you will require of franchisees. This may include advertising costs and construction costs. Again, your New York franchise attorney can help you establish these fees.
  • The initial investment - In item 7 of the FDD/UFOC you will provide an estimate of the total investment required of the franchisee. This must also be done in chart form. This will help potential franchisees plan their budgets and financing.
  • The franchisee's obligations - In item 9 of the FDD/UFOC, you will provide a list of the franchisee's obligations. These may include terms such as the selection and acquisition of a site, business training, the necessary fees, sales quotes, and the maintenance of the franchise location.
  • Financing - Item 10 of the FDD/UFOC will outline the terms of each financing agreement.
  • The franchisor's obligations - Item 11 of the FDD/UFOC, which is going to be the lengthiest section of the document, will outline your obligations to your business franchisees. These obligations will include assistance in locating a site, the hiring and training of employees, the provision of products and services, as well as your advertising activities.
  • Trademarks, patents, and intellectual property - Items 13 and 14 of the FDD/UFOC will provide information about the mandatory and restricted use of your company's trademarks, patents, and other federally protected intellectual property.


Additional Terms of the FDD/UFOC

In addition to the terms listed above, the FDD/UFOC will establish terms such as:

  • Restrictions on what a franchisee may or may not sell;
  • The renewal, termination, or transfer of the franchise; and
  • The territory that the franchisee will be entitled to.


Your New York franchise attorney can explain all of the terms and information that is required in the FDD/UFOC, particularly any aspects which have been shown to be problematic in situations similar to your own.

Contacting a New York Franchise Attorney

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD/UFOC. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.




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