2. I didn’t say believe the UFOC; what I said was that the only representations that you can rely upon are the ones contained in the UFOC. You need to understand this point of law when perform due diligence -as far as I can see, you don’t get it yet. That is very troubling.

3. The FTC document doesn’t support your claim.

4. The UFOC may be long and boring, but there is nothing boring about losing all your money. I see all sorts of people who didn’t review the UFOC, having only obtained it on discovery day.

5. I have given numerous suggestions at franchise-chat.com about how to read the important parts in a UFOC, in an effort to make the information more obtainable.

Well, according to the FTC (Federal Trade Commission, governing body for the franchise industry), YOU are WRONG! Here is an article (http://www.ftc.gov/bcp/conline/pubs/invest/buyfran.shtm) from the FTC that clearly states (very bottom of the article) that you should seek help from various people/organizations such as Lawyer and Accountant, Banks and Other Financial Institutions , Better Business Bureau, Government Departments, etc….

If I’m going to spend $200,000 in a franchise, I need more information than the UFOC can offer me…..

You say “If you understand how to properly read the UFOC information, and then seek to disconfirm what you believe with extrinsic evidence, that would be fine”. Problem is the UFOC is a long, boring and complicated document. Any potential franchise buyer needs to seek assistance from an experienced franchise attorney to understand the UFOC.

I may not be a lawyer but what I say in my article is correct. You only give the franchisor point of view which is pretty much like saying “believe everything I say in the UFOC and hurry to buy my franchise”. You take the franchisor side because that’s how YOU make money. I take the potential franchisee side and stick to it!

That is exactly the wrong advice to give: more information will simply be used to confirm bad ideas.

If you understand how to properly read the UFOC information, and then seek to disconfirm what you believe with extrinsic evidence, that would be fine.

But don’t tell people just to gather “all the information”. It is pointless, dangerous, and useless all at the same time.

This article aims at giving an overview of what prospective franchisees should do before buying a franchise. I am not talking about the legal aspect of the franchise purchase.

Yes, the UFOC is the only document that you can rely on, on a legal aspect.

However, I am talking about due diligence process here, and during your due diligence, you will HAVE TO go further than the UFOC.

You say: “You can only rely upon the information in the UFOC, as a matter of franchise law.”

By reading your comment, people may think that answers to all their questions may be found in the UFOC. Truth is you’re not going to find all the pertinent information you need in the UFOC.

You will have to do your own research. This research includes talking to existing franchisees… So now, are you going to say that potential franchise buyers shouldn’t talk to existing franchisees because it is not “protected by law”?? Are you going to say that I shouldn’t seek advice from a CPA or franchise attorney because it is not “protected by law”????

The point here is to find all the right information before making the decision to buy a franchise. People looking to buy a franchise should gather as much information as they can before buying a franchise!

Here is some spectacularly bad advice, all the more so because it seems compelling. Franchise Business Opportunities | Finding the Right Information About Franchises Fred……

“The UFOC is not the only place to find this information, and you certainly shouldn’t rely on it alone. You may also contact local chambers of commerce or business development organizations and see if they might supply information pertinent to your research.”

You can only rely upon the information in the UFOC, as a matter of franchise law.

Any other information that you seek out, don’t rely upon it. You may only use that information to contradict what is in the UFOC. Otherwise, the franchisor is not going to be legally bound by representations made outside the UFOC.