By law you must receive a copy of the UFOC at least 10 business days before paying any money and before any commitment is made. The UFOC may be given to you at the first meeting where you discuss the purchase. You may want to set up an appointment with your trusted business advisors prior to receiving the UFOC. An attorney''s review is always helpful as well.
There are two important attachments on this document.. The UFOC contains ocuments you will be required to sign for the franchise agreement. It is not always written in plain English and should be reviewed by a good lawyer familiar with franchising and representing small business owners.
The franchise agreement will tell your options in "getting out" of the agreement should the franchise fail. Review these statements carefully. The UFOC also contains the franchisor''s three most recent annual financial statements so you can at least get a sense of their financial health.
You should be sure to check the franchisor''s financial standing by reviewing its financial statements with an accountant and by checking it’s standing with the Better Business Bureau. It is better to discover complaints before you commit. If you do your homework using the UFOC, you will be much more likely to have a successful business in the future.