The FTC franchise rule allows a franchisor to provide a franchisor with information about the actual or potential financial performance of its franchises and/or franchisors, if an adequate basis for the information is available and the information is contained in the disclosure document. Financial information that differs from that mentioned in point 19 can only be provided if: (i) a franchisor makes available the actual registrations of an existing outlet that you wish to purchase; or (ii) a franchisor completes the information contained in this Article 19, for example by providing information about a possible service in a specific location or circumstance. (1) The duration of the franchisee`s activity. (a) If the pursuit of territorial exclusivity depends on the realization of a certain volume of sales, penetration or other contingencies, and under what circumstances the franchisee`s territory may change. Describe all terms of sale or other conditions. Include franchisor rights if the franchisee does not meet the requirements. B. Reveal whether the loan agreement requires franchisees to waive defences or other legal rights (for example. (B) or if franchisees are prevented from making a defence against the lender, the transferor or the franchisor. If so, describe the corresponding provisions.

d. In Column 4, insert remarks, definitions or reservations that explain in more detail the information contained in the table. If the remarks are long, franchisors can use footnotes instead of the comment column. If so, please include the following information in the “Observations” column or in a footnote: 1. Any restriction imposed on the franchisor to obtain or accept consumer orders in the franchisee`s territory, including: (1) Column 1 lists each state in which one or more franchise or business outlets are located or are likely to be installed. b) The franchisor chooses the location or authorizes a territory in which the franchisee chooses a location. If so, please indicate whether and how the franchisor should authorize a site chosen by the franchisee. (2) Please indicate in Column 2 the total number of franchise contracts signed for new outlets to be installed in each state at the end of the previous fiscal year at which the point of sale had not yet been opened. (3) Is there an advertising board, made up of franchisees, that advises the franchisor on advertising policy. If so, disclose: 6. A franchisor may include the following statement between the statements contained in subdivisions b and c of the cover page: “You may wish your disclosure document to be received in another format, which is more convenient for you. To discuss the availability of disclosures in different formats, please contact [name or office] at [address] and [phone number]. 3.

If the presentation is a forecast of future financial performance, you indicate the material basis and assumptions on which the projection is based. The main assumptions underlying a forecast include significant factors that should depend on a franchisee`s future results. These factors include, for example, economic or market conditions, which are fundamental to a franchisee`s operation and affect, among other things, a franchisee`s sales, the costs of goods or services sold, and operating costs. (d) whether the franchisor must spend an amount on advertising in the territory or territory where the franchisee is located. d. Include the names of all current franchisees and the address and telephone number of each of their outlets. You can also disclose this information to all state franchised stores, but if these franchises are less than 100, you can disclose this information for franchises in neighboring countries, and then for the nearest states until at least 100 franchises are listed.