What documentation is required when establishing a franchise?

When establishing a franchise in California, there are several documents that must be prepared and filed with the state. These documents include a Franchise Disclosure Document (FDD), a Franchise Agreement, a Franchise Brochure, and a Franchise Application. The Franchise Disclosure Document (FDD) is a comprehensive document created by the franchisor and filed with the state. The FDD contains information about the franchise business, as well as information regarding the franchisor, fees, restrictions, and business operations. The Franchise Agreement is the legal contract between the franchisor and franchisee. It outlines the duties and responsibilities of each party, as well as the terms of the agreement such as payment, duration, and termination. The Franchise Brochure, also created by the franchisor, is a marketing tool which provides potential franchisees with information about the franchise business. Lastly, the Franchise Application is the document that the franchisees must complete and submit to the franchisor in order to purchase a franchise. It includes questions about the franchisee’s background, financials, and experience. In summary, when establishing a franchise in California, the franchisor must prepare and file a Franchise Disclosure Document, a Franchise Agreement, a Franchise Brochure, and a Franchise Application. The Franchise Disclosure Document provides information about the franchise business, the Franchise Agreement is the legal contract between the franchisor and franchisee, the Franchise Brochure is a marketing tool, and the Franchise Application must be completed by potential franchisees.

What documentation is required when establishing a franchise?

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