Guaranty of Franchise Obligations | USA

U.S. franchisors are required by FTC regulations to provide all franchisee applicants with this Franchise Disclosure Document (FDD), which discloses all relevant information about the franchisor and the franchise business, including:

• the franchisor's corporate structure and history,
• the business experience of the principals of the franchisor,
• any current or potential litigation involving the franchisor,
• initial franchise fees and other fees to be paid by a franchisee,
• restrictions on sources of products and services, and restrictions on what the franchisee may sell,
• assistance and training programs offered by the franchisor,
• trademarks, patents, copyrights and proprietary information of the franchisor,
• provisions for renewal, transfer and termination of the franchise agreement,
• dispute resolution,
• financial statements and information,
• other information that a franchisee needs in order to evaluate the business opportunity.
• The FDD also includes a list of addenda to satisfy State-specific requirements.

To get your copy of the USA Franchise Disclosure Document, add it to your cart, check out and download the form.

USA franchisors, prepare a Confidential Evaluation and Application form for new franchisees with this easy-to-use template.

• evaluating the skills and expertise of the applicant franchisee, based on employment background and management history;
• verifying the potential franchisee's financial resources by performing credit checks and other searches, based on financial information provided;
• assessing the overall business capabilities of the potential franchisee.

Enter into a profit sharing arrangement with a franchisor who will distribute your products to its franchisees under the terms of this Revenue Sharing Agreement.

• The franchisor will act as your distributor and will distribute the revenue sharing products to any of its franchisees who agree to participate in the program.
• The shared revenue paid to the supplier on each product is a set price per unit. A portion of the upfront price of the products will be deducted from the supplier's share of revenues before remittance.
• The franchisor will not sell off any products until the expiration of each revenue sharing period, and will not sell products to wholesalers or jobbers, other than distressed products.
• Instead of receiving specific marketing support, the franchisor will accrue marketing support funds calculated as a percentage of the qualified sale price on revenue sharing products.
• The supplier has the right to audit the franchisor's records and those of its participating franchisees each year.
• The parties mutually indemnify and hold each other harmless.
• Available in MS Word format and fully customizable.
• Intended to be used only in the United States.

USA unit franchisors, prepare a Unit Franchise Agreement for a franchise associate with this comprehensive downloadable template.

• The associate is granted a license to use the franchisor's business marks, in order to establish and operate a franchise center within a specified territory.
• The unit franchisor will provide the initial training program and find a suitable location, and will provide ongoing consultation and guidance to the franchise associate.
• Provisions governing the design and construction of the franchise centers.
• Confidentiality provisions.
• The associate must provide accurate and complete accounting and financial records for the franchise business.
• The associate must maintain a life insurance policy naming the franchisor as beneficiary, with the proceeds to pay any outstanding amounts and indebtedness of the franchise business.
• The file includes a Guarantee, Indemnification and Acknowledgement from the principals of the associate, guaranteeing payment of amounts due under the agreement and indemnifying the franchisor.