Here is a sample cover page of a franchise disclosure document.
Franchise Disclosure Document
Belmont Mufflers, Inc.
A Minnesota Corporation
111 First Street
Jackson, Minnesota 55000
Belmont Mufflers, Inc., repairs and installs motor vehicle exhaust systems. The total investment
necessary to begin operation of a Belmont Mufflers franchise is $100,000. This includes $42,000 that
must be paid to the franchisor or affiliate.
This disclosure document summarizes certain provisions of your franchise agreement and other
information in plain English. Read this disclosure document and all agreements carefully. You must
receive this disclosure document at least 14 calendar days before you sign a binding agreement with,
or make any payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Note, however, that no government agency has verified the information contained in this document.
[Optional: You may wish to receive your disclosure document in another format that is more convenient
to you. To discuss the availability of disclosures in different forms, contact Belmont Mufflers’ franchise
group at 111 First Street, Jackson, MN, 55000 and (111) 222-3333.]
The terms of your contract will govern your franchise relationship. Do not rely on the disclosure
document alone to understand your contract. Read all of your contract carefully. Show your contract
and this disclosure document to an advisor, like a lawyer or an accountant.
Buying a franchise is a complex investment. The information in this disclosure document can help you
make up your mind. More information on franchising, such as “A Consumer’s Guide to Buying a
Franchise,” which can help you understand how to use this disclosure document, is available from the
Federal Trade Commission. You can contact the FTC at 1-877-FTC-HELP or by writing to the FTC at
600 Pennsylvania Avenue, NW, Washington, DC 20580. You can also visit the FTC’s home page at
www.ftc.gov for additional information. Call your state agency or visit your public library for other
sources of information on franchising.
There may also be laws on franchising in your state. Ask your state agencies about them.
Issued: April 15, 2008