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Legally, a prospective franchisee must receive the Uniform Franchise Offering Circular (UFOC) at least 10 days prior to signing the Franchise Agreement and/or making payment to the franchisor. This is part of the Franchise Rule, and it is not negotiable.
Item 23 in the UFOC is for receipt. It notes that there are two copies of a “Receipt of this Offering Circular, including all Exhibits” document attached to the UFOC as an exhibit. One of the copies must be signed and dated by the prospective franchisee and delivered to you. This should be done upon receipt of the UFOC.
Make sure the prospective franchisee is aware of this provision and that they do return the signed receipt to you before you proceed with the Franchise Agreement and eventual sale.
|Sheri Ann Richerson|