What is a Uniform Franchise Offering Circular (UFOC)?
This is the document supplied by the franchiser to prospective franchisees that describes in detail the franchise offering. It should be the focal point of the initial review of the franchise. In the law, it supercedes and overrules anything that is printed or said by other franchise literature and the sales persons representing the franchiser. In other words, if the sales person tells you one thing and the UFOC tells you something different, the UFOC rules. It is important to understand that the UFOC can be a legal protection for the franchiser. It is often used to defend against claims by unhappy franchisees that they were not informed or did not understand some aspect of the franchise agreement. If it was disclosed in the UFOC, most courts and judges have ruled that the franchisee was informed and should have known. The potential danger for the franchisee is his or her lack of understanding of certain legal or technical wording in a UFOC. Lawyers are used to draft UFOC s and lawyers
This is the document supplied by the franchiser to prospective franchisees that describes in detail the franchise offering. It should be the focal point of the initial review of the franchise. In the law, it supercedes and overrules anything that is printed or said by other franchise literature and the sales persons representing the franchiser. In other words, if the sales person tells you one thing and the UFOC tells you something different, the UFOC rules. It is a good idea to get legal assistance in understanding and interpreting UFOC’s if you don’t feel comfortable with them.
