Model Franchise Agreement Definition
(J) the restrictions or conditions imposed on the franchisee with respect to the goods and/or services that the franchisee may sell; 62. Paragraph 1 indicates when the disclosure document must be submitted to the prospective franchisee by a specified franchisee. The fixed period of fourteen days is a compromise between the twenty days prescribed by some national laws and the seven or five days requested by others. Fourteen days is a period that allows the potential franchisee to review the document and get expert advice. Nor would they include refunds for causes such as due diligence investigations or market or legal research related to the market in which the potential franchisee proposes to operate the franchise. This paragraph also stipulates that the franchise agreement must be appended to the disclosure document, as it is normally an exhibition of this document. 108. A number of franchisors provide potential franchisees with statistical information on the financial performance of the points of sale owned by the franchisee, the related businesses of the franchisee or franchisees in the network. This information may relate to both past financial performance and estimated or expected future performance (referred to as „profit claims“).