The UFOC, Uniform Franchise Offering Circular, is a document of disclosure that is required by the FTC of all franchisors. It provides franchisees with the opportunity to study the investment before buying. It is given to many prospective franchisees by the franchisor once the franchisor is satisfied that the prospective franchisee is qualified financially to purchase the franchise.

The UFOC shows all current and past franchisees.

Now, why is the UFOC important to the prospective franchisee?

The prospective franchisee can contact as many franchisees as they want to gain knowledge and perspective on the current status of the franchise. Past performance is generally a good indicator of future performance.

The UFOC is a vital part in a prospective franchisee doing research about a franchisor.

Labels: Franchise Opportunity