Goodbye UFOC, Hello FDD

It’s official: As of this month (July 2008), the Uniform Franchise Offering Circular, or as many call it the “UFOC” will no longer be used. The new document is called the Franchise Disclosure Document or “FDD.”

The FDD is the legal document that is provided by the franchisor to a potential franchisee prior to the completion of a sale. The document not only has a different name, but also some new rules. The FDD will continue to provide necessary information to the potential franchisee so that a knowledgeable purchase may be made. However, there are several revisions to the UFOC that are expected to make this process more efficient for both the franchisee and the franchisor.

I feel the amended Franchise Disclosure Document offers a much-needed update from the original UFOC that was created in 1978. It is great to see some changes that benefit the franchisee.