Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Components Of The UFOC and other Franchise topics.
Hopefully you've picked a great franchisee and the franchise business is operating profitably and all is well. If, however, something unforeseen happens and the franchisee needs to be terminated or transferred, you need to have written, binding policies. In fact, you need standard policies for the length of the term of a franchise and for renewing or extending terms for successful franchises. If you don't have these policies, you may find yourself on the expensive end of a lawsuit.
Item 17 of the Uniform Franchise Offering Circular (UFOC) lists provisions of the Franchise Agreement that pertain to renewal, termination, transfer and dispute resolution. You must describe these procedures in detail. Specifically, include provisions for:
|Jennifer Mathes, Ph.D.|