Uniform Franchise Offering Circular

Definition

The Uniform Franchise Offering Circular is a legal document required by the Federal Trade Commission that provides comprehensive information about a franchise, aimed to protect prospective franchisees. It includes details on the franchisor's history, financial statements, litigation history, and the terms and conditions of the franchise agreement.

Related terms

Franchisor:

A business entity that grants the right to operate a franchise under its brand and business model.

Franchisee:

An individual or entity that purchases the right to operate a business under the franchisor's name and system.

Franchise Agreement:

A legal contract outlining the duties and rights of both franchisor and franchisee in the franchising relationship