Content: This is simply a one-page document the prospective franchisee signs to acknowledge the Franchise Disclosure Document was received.
Purpose: There is no obligation related to this signature page; it is merely an acknowledgement of receipt and a listing of your rights under the FTC.
Tips & Advice: There is no need for concern about signing this page and returning it to the franchisor.
A number of exhibits are found after Items 1 – 23. These exhibits are important to your full understanding of the contractual relationship. Whether you choose to use a lawyer to review the exhibits or not, it is critical you review the information in these exhibits yourself and attempt to understand the information. I will touch on this topic more in Chapter 14. These exhibits change from franchise to franchise, but they generally include the following:
- A template version of the Franchise Agreement you would sign as a franchisee
- A template version of any other legal contract you may need to sign as a franchisee including guarantees, leases, service agreements, etc.
- A full list of all franchisees as of the date of the document including the name, address and phone number
- Table of Contents from the Operational Manual
- Corporate financial statements