Find A Franchise In Florida United States

When entering into a business franchise agreement, it's important to know your rights. In the United States, the Federal Trade Commission (FTC) imposes regulations on franchise companies which require full disclosure of all information about a parent company to potential franchise buyers. Individual states also provide additional regulations to protect buyers from fraud.

Business Franchise Regulations

Regulations are set up to protect buyers from companies that inflate the potential success of franchise opportunities. Complete disclosure documentation must be presented to potential buyers according to the basic disclosure rule. This type of disclosure is known as a Uniform Franchise Offering Circular (UFOC), and it includes historical earnings and future forecasts, as well as proper supporting documentation. Parent companies must also disclose the legal standing of the business.

Many states have their own disclosure laws and regulations. A requirement for registration forms is included in many state regulations. In Florida, the Florida Department of Agriculture and Consumer Services (FDACS) governs such regulations. If a buyer finds that a parent company has violated the FTC or state regulations, a signed agreement may be voided.

Business brokers can help franchise buyers find franchise opportunities and understand the agreements offered by the parent company, as well as explain the buyer's state and federal rights. RPI Commercial is an experienced business brokerage. RPI representatives can be reached by calling 1-877-549-5210 or sending an email to info@rpicommercial.com for more information.