Business Franchise Disclosure Document

BUSINESS FRANCHISE DISCLOSURE DOCUMENT

Parties and Effective Date

Franchisor Name:

Franchisee Name:

Effective Date:

Recitals

WHEREAS, Franchisor owns and has developed a system for the operation of a business offering products and services under a distinctive trade name, trademarks and business methods (the System); and

WHEREAS, Franchisee desires to obtain the right to operate a franchised business using the System, subject to the terms, conditions and disclosures set forth in this Business Franchise Disclosure Document, and Franchisor is willing to grant such right on the terms set forth herein;

WHEREAS, the parties intend that this document disclose material facts regarding fees, obligations, territorial rights, training and support, financial performance representations and other matters material to Franchisee's decision to enter into a franchise relationship.

Franchise Overview

Business Concept: Franchisor grants Franchisee the right to operate a franchised unit using Franchisor's System and Marks in accordance with the terms of the franchise agreement to be executed contemporaneously with or following this disclosure.

Franchise Territory: . Any territorial exclusivity is limited to the terms expressly set forth in the franchise agreement.

Scope of Work

Franchisee shall operate the franchised business in strict conformity with Franchisor's current operations manual, specifications, standards, and procedures. Any material deviation requires prior written approval by Franchisor.

Payment Terms

All fees shall be payable in United States currency unless otherwise specified. Franchisee is responsible for taxes, banking charges and any costs associated with remittance of fees. Franchisor may withhold further support if Franchisee fails to timely pay any required fees.

Term and Termination

Initial Term Commencement Date: . Initial Term Expiration Date: .

Training, Support and Operations Manual

Franchisor shall provide initial training and ongoing operational support as described below. Franchisee agrees to participate in required training programs and to adhere to updates to the operations manual. Failure to comply with required training or operational standards constitutes a breach subject to remedies in the franchise agreement.

Franchisor and Franchisee Representations

Franchisor represents that, to the best of its knowledge, the information contained in this document is true and accurate as of the Effective Date. Franchisor makes no representations beyond those expressly set forth in writing herein or in the franchise agreement.

Franchisee represents that Franchisee has the authority to enter into this arrangement, has disclosed all material financial information necessary for Franchisor's consideration, and will comply with all applicable laws, codes and regulations in the operation of the franchised business.

Confidentiality

All confidential materials, including but not limited to manuals, procedures, pricing schedules, customer lists and trade secrets (Confidential Information), provided by Franchisor to Franchisee shall remain the exclusive property of Franchisor. Franchisee shall not disclose, use or permit the use of Confidential Information except as necessary to operate the franchised business pursuant to this agreement. Confidentiality obligations survive termination for a period of five (5) years, except where a longer period is required by law.

Financial Performance and Attachments

Any financial performance representations are contained only in Attachment A and are made only to the extent expressly set forth therein. Franchisee acknowledges receipt of the following attachments and documents listed below:

Attachment A — Financial Performance Representations

Attachment B — Sample Franchise Agreement

Attachment C — Operations Manual Summary

Renewal, Transfer and Assignment

Renewal rights, transfer restrictions and assignment conditions are governed by the franchise agreement. Generally, transfers require Franchisor's prior written consent and may be conditioned upon Franchisee satisfying outstanding obligations, payment of transfer fees and compliance with transfer procedures described in the franchise agreement.

Indemnification

Franchisee shall indemnify, defend and hold harmless Franchisor and its affiliates from and against any claims, losses, liabilities and expenses arising from Franchisee's operation of the franchised business, except to the extent caused by Franchisor's gross negligence or willful misconduct. Procedures for defense and settlement are set forth in the franchise agreement.

Governing Law and Dispute Resolution

This Disclosure Document and any franchise agreement derived from it shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of law principles. Any dispute arising out of or related to this document shall be resolved by the dispute resolution procedure set forth in the franchise agreement.

Entire Agreement

This Business Franchise Disclosure Document, together with the attachments listed herein and the separate franchise agreement executed by the parties, constitute the entire understanding between the parties concerning the subject matter hereof and supersede all prior written or oral statements, representations or agreements, except as expressly set forth in writing.

Acknowledgment of Receipt

Franchisee acknowledges receipt of this Business Franchise Disclosure Document and all attachments on the following date: . Receipt does not constitute execution of the franchise agreement but confirms that Franchisee has been provided the disclosures required by this document.

Notice

Franchisor Disclosures and Certifications

Franchisor certifies that the information contained in this document, and in the attachments delivered concurrently, is true and complete to the best of its knowledge as of the Effective Date stated above. Franchisor further certifies that no additional material facts have been withheld that would make the disclosures herein misleading.

Sign Now