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Extra info for Toward a Unified Conception of Business Ethics
Item 8 Most franchisors place restrictions on the type of products and services a franchise outlet can purchase or acquire to outfit a unit, stock it, and operate it. Because a franchise is a part of a uniform 47 48 how to buy a franchise system, this is to be expected—you don’t expect to see bar signs offering your favorite beer at Burger King. Item 8 discloses, in a general fashion, the restrictions placed on you as a franchisee in a uniform system. If there are restrictions on certain aspects of the operation, such as purchasing food products, equipment, electronics, services, fixtures, supplies, and advertising materials from the franchisor or its approved suppliers or only in accord with the franchisor’s specifications, you should find them in Item 8— Restrictions on the Sources of Product and Services.
If you encounter a franchise system that has a patented product at its core, it may be wise to consult with a patent attorney in addition to the other professional assistance you may require.
CONTENTS Now that you are ready to read the Offering Circular, you should review some of the basic elements. As you look over the Table of Contents, you will see a number of important items that should attract your attention. The labels themselves should draw your attention. A typical Table of Contents found in a Uniform Franchise Offering Circular is as follows. ) Item 1 Item 1 addresses the background of the franchise company. Although Chapter 9 is devoted exclusively to this topic, here is where you can begin to evaluate the stability of the franchisor and one of the most important attributes to review.