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About Franchising |
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In 1998 the sales of franchised goods and services at 700,000 + franchise locations in the USA reached nearly $850 billion. Globally, nearly 800 franchisors have sold franchises abroad, accounting for over 50,000 overseas locations. This exciting growth has changed the way we can purchase a home, buy or get service for a car, shop for food and even launder our clothing. All of these services can be obtained by choosing from a variety of franchised stores and offices. You can even plan an entire vacation and recreational activities, utilizing franchised entertainment facilities and health clubs. It seems the franchise opportunities are endless.
While generally considered a safer business opportunity than buying a non franchised business, or starting up one's own business, there are still risks involved with the purchase of a franchise.
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Franchise Regulation |
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Franchises Are Regulated. As you continue through this web site we would like to remind you that in the USA the offer and sale of a franchise is regulated at both the federal and state level ...
Federal Trade Commission (FTC) adopted in 1979 its trade regulation rule 436 (the "FTC Rule") which specifies the minimum amount of disclosure that must be made to a prospective franchisee in any of the fifty states. Registration States: In addition to the FTC Rule, over a dozen states have adopted their own rules and regulations as to the offer and sale of franchises within their own borders. These states include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Texas, Virginia, Washington, and Wisconsin. These states generally follow a more detailed disclosure format, known as the Uniform Franchise Offering Circular (UFOC).
Franchises and Licenses Advertised On This Web site. The companies advertised on this web site are not to be considered an "offering" or recommendation by FranchiseUniverse.com. We are solely provided the information by each franchise company and rely on the accuracy of the information they provide to us. You may learn more about the individual franchise companies by going to the following sections.
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Additional Reading:
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A Consumer Guide to Buying a Franchise published by the FTC is an excellent article for your reading. Guide To The FTC Rule. Another article which covers the FTC Rule in more depth. Your Rights: 1. The right to receive a disclosure statement prepared by the seller which contains information you should know about the seller and the investment opportunity, including copies of all agreements you will be required to sign. 2. The right to a written explanation of all earning claims about the sales, income or profits which other investors have realized or which you can achieve by investing in the proposed investment opportunity. This explanation must describe the factual basis and assumptions behind such claims and include information about the number and percentages of other investors who are known to have done well. A salesperson's verbal earnings claims, not accompanied by the written explanation set forth above, is against the law and probably unreliable. 3. The right to a refund if you were promised one and meet all the conditions for obtaining it.
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