(i) Any training programs provided to franchisees.

(j) Any involvement of any celebrity or public figures in franchise.

(k) Any assistance provided by franchisor in selecting site for franchisee.

(l) The number of present franchises, franchises projected for future, franchises terminated or not to be renewed, and number repurchased in past.

(m) The financial statements of franchisors.

(n) The extent to which franchisees must personally participate in operation of franchise.

(o) The basis for any earnings claims made to franchisee, including percentage of existing franchises that have achieved results claimed.

(p) The names and addresses of other franchisees.

This disclosure must occur at first contact with franchisor, franchise broker, or anyone who represents franchise for sale, where subject of buying a franchise is discussed. The disclosure must be at least ten business days before signing of any franchise or related contract or payment to franchisor.

Although FTC does not require registration from franchisor, several states do have registration rules requiring franchise sellers to register. Most states have adopted Uniform Franchise Circular Offering (UFOC) guidelines for their disclosure requirements, but as a potential franchisee, do not assume that if a franchise is registered with state or provides some type of full disclosure document, you are protected from possibility of a failure or rip-off. You must use common sense and do your research!

© 2002-03. GlobalBX. http://www.globalbx.com. All rights reserved. Buy a Business or Sell a Business on GlobalBX. GlobalBX is a free business for sale listing exchange that provides a confidential forum to facilitate buying and selling of businesses with thousands of businesses and franchises for sale as well as comprehensive business information for business buyers and business sellers. Lists businesses for sale, business brokers, and franchise opportunities.

Corporate organization and ownership Products and inventory Customers and suppliers Management and employees Sales and marketing Facilities and equipment Reporting and control systems Financial results and balance sheet It is likely that buyer's accountant is involved in due diligence process to perform a financial audit and verify all past financial records. If business is incorporated, buyer's attorney may thoroughly review your corporate documents and legal standing.

Purchase Agreement

The purchase agreement details all legal and financial aspects of deal as well as business terms and structure of deal that were outlined earlier in Letter of Intent. This contract is legally binding.

© 2002-03. GlobalBX. http://www.globalbx.com. All rights reserved. Buy a Business or Sell a Business on GlobalBX. GlobalBX is a free business for sale listing exchange that provides a confidential forum to facilitate buying and selling of businesses with thousands of businesses and franchises for sale as well as comprehensive business information for business buyers and business sellers. Lists businesses for sale, business brokers, and franchise opportunities.