Table of Contents | Franchise Disclosure Documents

Table of Contents | Franchise Disclosure Documents

The Table of Contents Each disclosure document must contain a table of contents, following the order and form set forth in the amended Rule. When preparing the table of contents, franchisors must state the page where each disclosure item begins and refer to any exhibits by letter. Note that, on this example of a franchise…

Integration Provision Example | Sample Franchise Disclosure Document

Integration Provision Example | Sample Franchise Disclosure Document

Sample Integration Provision This Agreement and all exhibits to this Agreement constitute the entire agreement between the parties and supersede any and all prior negotiations, understandings, representations, and agreements. Nothing in this or in any related agreement, however, is intended to disclaim the representations we made in the franchise disclosure document that we furnished to…

Financial Performance Representation | Sample Franchise Disclosure Document | Item 19

Financial Performance Representation | Sample Franchise Disclosure Document | Item 19

Sample Item 19-1: Financial Performance Representation (Based on Actual Historical Performance Results) ITEM 19: FINANCIAL PERFORMANCE REPRESENTATION The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in…

Minnesota Franchise Regulatory Considerations | Minnesota Blue Sky Laws

Minnesota Franchise Regulatory Considerations | Minnesota Blue Sky Laws

A company selling securities to residents of the state of Minnesota must comply with federal and state securities laws. State securities laws are collectively and individually referred to as “Blue Sky Laws.” These Blue Sky Laws vary among the states, sometimes to a significant degree. It is important to note that the Minnesota Legislature recently…

Financial Statements | Sample Franchise Disclosure Document | Item 21

Financial Statements | Sample Franchise Disclosure Document | Item 21

Sample Item 21-1: Financial Statements ITEM 21: FINANCIAL STATEMENTS Attached to this disclosure document as Exhibit J are our audited, fiscal year end financials for 2005, 2006, and 2007. Attached to this disclosure document as Exhibit K are the audited, fiscal year end financials for 2005, 2006, and 2007 of subfranchisor Richard McDonald. Sample Item…

Table of Contents Example | Sample Franchise Disclosure Document

Table of Contents Example | Sample Franchise Disclosure Document

Table of Contents Item Page 1. The Franchisor and any Parents, Predecessors, and Affiliates 1 2. Business Experience 3 3. Litigation 4 4. Bankruptcy 6 5. Initial Fees 7 6. Other Fees 10 7. Estimated Initial Investment 11 8. Restrictions on Sources of Products and Services 12 9. Franchisee’s Obligations 15 10. Financing 17 20….

Estimated Initial Investment Example | Sample Franchise Disclosure Document | Item 7

Estimated Initial Investment Example | Sample Franchise Disclosure Document | Item 7

ITEM 7: YOUR ESTIMATED INITIAL INVESTMENT (Column 1)Type ofexpenditure (Column 2)Amount (Column 3)Method ofpayment (Column 4)When due (Column 5)To whom paymentis to be made Initial franchise fee $15,000 (note 1) Lump sum At signing offranchiseagreement Belmont Mufflers,Inc. Travel and livingexpenses whiletraining $2,500 to $5,000 As incurred During training Airlines, hotels, andrestaurants Real estate andimprovements (Note…

Sample Franchise Disclosure Document | Other Fees Example

Sample Franchise Disclosure Document | Other Fees Example

ITEM 6: OTHER FEES (Column 1) Type of fee (Column 2) Amount (Column 3) Due Date (Column 4) Remarks Advertising (note 1) 2% of total gross sales. Same as royalty fee Cooperative Advertising (note 1) Maximum – 2% of total gross sales Established by franchisees Franchisee may form an advertising cooperative and establish local advertising…

Sample Franchise Agreement / Disclosure Document Examples

Sample Franchise Agreement / Disclosure Document Examples

Introduction The Amended Franchise Rule specifies how franchise disclosure documents are to be prepared, what additional information may and may not be included, and what records franchisors must maintain. Disclosure documents must: use “plain English”; be contained within a single document; and address each disclosure item without including additional information. It is recommended that an…

Sample Public Figures Franchise Disclosure Example

Sample Public Figures Franchise Disclosure Example

ITEM 18: PUBLIC FIGURES Belmont has paid Ralph Doister $50,000 for the right to use his name in promoting the sale of our franchise. This right expires on December 31, 2008. Belmont has produced newspaper ads, a brochure, and a video which feature Mr. Doister. Mr. Doister does not manage or own an interest in…

What are the different types of business structures?

What are the different types of business structures?

Corporations A corporation is an entity where the interest is held by shareholders and whose business is conducted by a board of directors. The shareholders have limited liability, and can normally transfer their interest freely without affecting the existence of the entity. Corporations are normally subject to double taxation; that is, the profits of the…

What is limited liability, and why do I need it?

What is limited liability, and why do I need it?

“Limited Liability” means that an investor will not be automatically held personally liable for acts of the business, including those acts of other investors, beyond the amount of the individual’s investment. This is important, because it protects your personal assets from creditors. Having limited liability, however, does not give someone a blanket protection from any…

Minnesota Photography & Video Taxes

Minnesota Photography & Video Taxes

This post helps explain how Minnesota sales and use tax applies to sales of photography, and to purchases made by photographers. These guidelines also apply to video production. This post is intended to help you become more familiar with Minnesota tax laws and your rights and responsibilities under the laws. This is based on Minnesota…

Private Nuisance Actions

Private Nuisance Actions

This post is part of a series of posts on Minnesota’s Public and Private Nuisance Laws. Separate from public nuisance but sometimes overlapping it, Minnesota statutes also recognize private nuisance. Private nuisance is a form of damage caused by wrongful conduct. The wrongful activity may consist of a statute or ordinance violation, or it may…

Minnesota Public Nuisance Law

Minnesota Public Nuisance Law

This post is part of a series of posts on Minnesota’s Public and Private Nuisance Laws. State Public Nuisance Law The key element of Minnesota’s statutory public nuisance law is a civil process through which the creation or continuation of common public nuisance activities can be prevented. This process is described below. The law also…

Minnesota’s Public and Private Nuisance Laws

Minnesota’s Public and Private Nuisance Laws

This and the next several posts describe Minnesota laws that provide remedies to combat offensive or injurious conditions or activities that are a “nuisance” to the surrounding community. A condition or activity may be either a “public nuisance” or a “private nuisance” depending on the scope of the problems caused by the nuisance and on…

Alien Farmers in Minnesota 1851-2004

Alien Farmers in Minnesota 1851-2004

Minnesota prohibits most ownership of farmland by individuals who are not U.S. citizens. The legislature has wrestled with this issue numerous times; in its 153- year history, the legislature has made several dramatic reversals of previous land ownership policies. This information brief provides background information on Minnesota’s laws limiting farmland ownership by aliens and identifies…

Appendix C: 2007 Data Including Returns with Losses

Appendix C: 2007 Data Including Returns with Losses

Distribution of Returns with Proprietor or Pass-through Income or Loss Percent with Sole Proprietor income or loss Percent with S corporation/partnership income or loss No liability 20.3% 5.1% 5.35 percent bracket 15.5 4.0 7.05 percent bracket 15.3 7.5 7.85 percent bracket 20.1 31.0 All filers 16.5 7.6 9.25 percent bracket ($250,000) 23.6 48.7 9.0 percent…

Appendix B: Tax Calculations for an Example Pass-through Taxpayer

Appendix B: Tax Calculations for an Example Pass-through Taxpayer

S Corporation, Two Shareholders, Distributes B to Shareholders Taxpayers B1 and B2 formed an S corporation, using $100,000 of money they saved to start a business. B1 contributed 75 percent of the money, $75,000, and owns 75 of the 100 shares of stock. Taxpayer B2 contributed $25,000, and owns 25 of the 100 shares of…

Appendix A: Comparative Tax Treatment of Different Entities

Appendix A: Comparative Tax Treatment of Different Entities

This post is part of a series of posts on the tax implications of different business entity types. Tax Treatment of Different Types of Business Entities or Forms Feature C Corporation S Corporation Partnership* Proprietorship Entity level tax (i.e., two levels of taxation, both to entity and individual owner?) Yes – income taxed to entity…

Minnesota Tax Data on Businesses Subject to Pass-through Taxation

Minnesota Tax Data on Businesses Subject to Pass-through Taxation

In brief, this data show for tax year 2007 that filers with business income are distributed widely across the entire income distribution, but that business income, particularly from pass-through sources, is concentrated on top bracket returns: Business income contributed about 11.3 percent of Minnesota individual income tax revenues. About 16 percent of all Minnesota filers…

National and State Data on Business Type and Size

National and State Data on Business Type and Size

Proprietor and pass-through entities are often used as a proxy for “small businesses” but tax data reveal many of them are not small. Table 3 lists the number of business filing tax returns by organizational form. Most business owners—72 percent nationally and 66 percent in Minnesota—report their income as proprietors rather than bothering to form…

Tax Implications for Different MN Business Entity Types

Tax Implications for Different MN Business Entity Types

Executive Summary Owners of a small business can elect to operate in several different forms. They can organize and operate for tax purposes as one of the following: Corporation (C or S corporation) Partnership (general, limited, or limited liability partnership) Limited liability company (LLC) Proprietorship (no explicit form of organization) In general, “pass-through” taxation provides…

Types of MN Business Entities and Tax Implications

Types of MN Business Entities and Tax Implications

This is part of a series of posts on the tax implications of different business entity types. Types of Business Entities and Tax Implications Various factors affect the choice of the form of business organization. Business owners can choose among several different forms of organization with different tax and other legal consequences to each of…

Taxation and Small Businesses in Minnesota

Taxation and Small Businesses in Minnesota

Recent debates in the Minnesota Legislature on individual income tax proposals have focused on their impact on and implications for businesses that are taxed under the individual income tax. Most businesses are organized as sole proprietorships, partnerships, subchapter S corporations or limited liability companies (LLCs), and pay tax on their business income under the individual…

Minnesota Department of Revenue General Levy Guidelines

Minnesota Department of Revenue General Levy Guidelines

Collect tax debts first, then collect other agency debts in the order they were referred to the Department for collection. The Minnesota Department of Revenue’s wage levy for any type of debt takes precedence over a private garnishment after 70 days from service of the private garnishment to the employer. It does not take precedence…

Steps to Make the Audit Process Go More Smoothly

Steps to Make the Audit Process Go More Smoothly

There are several things that you can do to facilitate the audit process should your business be selected for audit: Use accounting software (Quickbooks, Peachtree, etc) to keep your accounting records Keep your books and records up to date Retain copies of: Bank statements and cancelled checks/deposit slips Credit cards statements and the supporting receipts…

MinnesotaCare Taxes | Minnesota Business Registration

MinnesotaCare Taxes | Minnesota Business Registration

Who must register for MinnesotaCare taxes Hospitals, health-care providers and surgical centers You must register to file MinnesotaCare taxes if you are: a self-employed licensed or registered health-care provider, an employer of a licensed or registered health-care provider, eligible to receive reimbursement from Medical Assistance for the health-care services you provide, a seller of prescription…

Income and Franchise Taxes | Minnesota Business Registration

Income and Franchise Taxes | Minnesota Business Registration

Click here for more Minnesota business registration information. Due dates to file annual Minnesota tax returns Form M1, Individual Income Tax Due April 15 or the 15th day of the fourth month after the end of tax year Sole proprietors report income on their individual income tax return Form M8, S Corporation Return Due the 15th…