Franchise Disclosure Document

The law of several U.S. states including New York and California as well as Canadian law require franchisors to provide potential franchisees with a disclosure document that includes an array of specified information about the business opportunity on offer. Misrepresentations in the franchise disclosure document will usually give rise to a cause of action on the part of the franchisee. A similar document called the Uniform Franchising Offering Circular or (UFOC) is required in a number of other U.S. states as well as under the United States Federal Trade Commission Franchise Disclosure Rule.