Examples of Franchise Disclosure Document in the following topics:
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- Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule .The Franchise Rule requires that a franchisee be supplied a Uniform Franchise Offering Circular (UFOC ) or Franchise Disclosure Document (FDD ) prior to signing a franchise agreement, a minimum of ten days before signing a franchise agreement.
- Once the Federal ten-day waiting period has passed, the Franchise Agreement becomes a State level jurisdiction document.
- Each state has unique laws regarding franchise agreements.
- Uniform Franchise Offering Circular (UFOC) or FDD Franchise Disclosure Document (FDD)
- Franchising agreements contain many legal documents that must be understood and filled out.
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- Elements of a Business Plan: Cover sheet, Executive summary (statement of the business purpose), Table of contents, Body of the document, Business Description of business, Marketing Competition, Operating procedures, Personnel Business insurance, Financial data, Loan applications, Capital equipment and supply list, Balance sheet Break-even analysis, Profit and loss statements, Three-year summary, Detail by month -- first year, Detail by quarters -- second and third year, Assumptions upon which projections were based, Pro-forma cash flow, Supporting documents, Tax returns of principals (partners in the business) for last three years, Personal financial statements (all banks have these forms), Copy of franchise contract and all supporting documents provided by the franchisor (for franchise businesses), Copy of proposed lease or purchase agreement for building space, Copy of licenses and other legal documents, Copy of resumes of all principals, Copies of letters of intent from suppliers, etc.
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- Thus, in the absence of such statutory provisions, the members of an LLC must establish governance and protective provisions pursuant to an operating agreement or similar governing document.
- Many jurisdictions levy a franchise tax or capital values tax on LLCs.
- In essence, this franchise or business privilege tax is the fee the LLC pays the state for the benefit of limited liability.
- The amount of the franchise tax can be based on the following: