Adopts in large part ufoc

... The Amended Rule adopts in large part the “UFOC Guidelines” disclosure model, which most franchisors in the U.S. were previously using. There were several changes from the old FTC Rule and UFOC Guidelines to the Amended Rule. In a departure from the UFOC Guidelines, the Amended Rule eliminated references to “expense” information from the definition of a financial performance representation. Generally speaking, the new sophisticated investor exemptions are as follows: ” Large Investment. The “large franchisee” exemption exempts from disclosure franchise sales to a franchisee who is (or who has a parent or an affiliate who is) an entity that has been in business for at least five years and has a net worth of at least $5 million. In other words, the Amended Rule will set a minimum compliance level with which all franchisors must comply in all U.S. jurisdictions, but the states may impose additional restrictions. ...