Franchisors, prospective franchisees, and franchise suppliers will benefit from electronic delivery of the UFOC. Franchisors can respond faster to prospective franchisees and save on administrative costs. Prospective franchisees can use electronic search tools to better understand and evaluate the UFOC, and can more readily share it with investors and advisors. Franchise suppliers can deliver faster and better service to the franchise industry.
Legal Background
Offering circular delivery via diskette was first addressed by the FTC in Informal Staff Advisory Opinion 97-2. Such delivery is still used occasionally today, normally with CDs. Under this procedure, prospective franchisees must have the option to decline diskette delivery, and the diskette must be labeled with specific identifying information.
