Item 22: Contracts
Content: The franchisor will attach a copy of all agreements proposed for use or in use in this state regarding the offering of a franchise, including the Franchise Agreement, sample leases, Options and Purchase Agreements.
Purpose: This section itself is brief, but it contains references to the exhibits that constitute the legal relationship between you and the franchisor.
Tips & Advice: Your alertness is critical in this section, as it refers to the actual legal documents you will be signing should you chose to become a franchisee. While it is an invaluable guide, the Franchise Disclosure Document is not a legal document – but all the exhibits listed in Item 22 are. Most notable, of course, is the actual Franchise Agreement itself. Don’t think the Franchise Agreement is the only legal contact for you to be concerned with. Every other exhibit, such as a Territory Addendum, is a separate, legally-binding contract to be executed by both franchisor and franchisee. So don’t be fooled by the brevity of Item 22 – and pay careful attention to each of the exhibits listed there.