After you have read offering circular, ask franchisor for a list of franchisees that you can contact. Current franchisees are a great resource and can give you detailed insight on how company is really doing, what to consider before and after you get into business, and other critical information. You should visit franchise stores and corporate headquarters to uncover any information that will help you make your decision. Assemble a team of professional advisors, including a franchise attorney and an accountant. They can help you answer technical questions and will be a useful resource throughout research process.

© 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.

(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.