What is a Disclosure Document?
What is a Disclosure Document? Most provinces require sellers of franchises and other business opportunity ventures to provide prospective investors with the information they need to make an informed investment decision. This information is presented in the form of a franchise disclosure document.
The franchise disclosure document requires that all earnings claims be documented, that the information investors receive be complete and accurate and that investors have adequate time to consider and evaluate the disclosures before making any final purchase commitment.
The franchise disclosure document must be furnished at least 10 business days before any purchase may occur.
Many important items of information must be included in the franchise disclosure document, such as:
What is a Disclosure Document? Most provinces require sellers of franchises and other business opportunity ventures to provide prospective investors with the information they need to make an informed investment decision. This information is presented in the form of a franchise disclosure document.
The franchise disclosure document requires that all earnings claims be documented, that the information investors receive be complete and accurate and that investors have adequate time to consider and evaluate the disclosures before making any final purchase commitment.
The franchise disclosure document must be furnished at least 10 business days before any purchase may occur.
Many important items of information must be included in the franchise disclosure document, such as:
- Names, addresses and telephone numbers of other franchisees.
- A fully audited financial statement of the seller.
- The cost required for starting and maintaining the business.
- The responsibilities you and the seller will share once you buy a franchise.
- Litigation involving the company or its officers, if any.
Use all the professional support available to examine these issues as some of the contract terms may be negotiable. Find out before you sign any contracts; otherwise, it will be too late.
