• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
The Kosnar Group2306 Wales DriveCardiff by the Sea, CA 92007Phone: (760) 632-8402Mobile: 619-994-2258Fax: (760) 632-0772MEMORANDUM
To:From:Carl J. Kosnar Re:Questionnaire to Assist in Structuring the Franchise AgreementDate: _________________________________________________________________________ The federal franchise laws are basically "disclosure" laws. That is, they do not regulate toany significant extent the terms of the agreement between you, as the franchisor, and a franchisee (the"franchise agreement").This Questionnaire focuses on information relative to the various types of provisions to beincluded in your franchise agreement. Please try to answer the questions as fully as possible. If youare unable to answer any questions completely, respond as best you can.If any question is inapplicable to your franchise program, respond with "N/A." We have triedto explain the reasons for many of the questions and have given you a choice of several possibleanswers based on our franchising experience, where appropriate. These proposed answers are only possibilities, not required responses. If you have a different answer, let us know. When respondingto questions on your franchise program, be reasonable and base your responses on any experienceyou may have had to make your own business successful. We will review your responses to thequestions and schedule a time to discuss them with you.This Questionnaire will be used to prepare a franchise agreement for a prospective franchisee purchasing one single-unit franchise. Responses related to the Fair Franchising Standards arehighlighted in bold. More complex franchise arrangements such as area development (multiple-unit)agreement, subfranchising (master franchising) and area representative (development agents) requireadditional documents and disclosures. Most start-up franchisors concentrate on single-unit salesinitially.The steps for preparation of your documents once we have received the completedQuestionnaire are: we prepare the franchise agreement and the exhibits for your review andcomment; we then have you complete our Questionnaire for the disclosure statement; we then prepare the disclosure statement for your review and comment. The full document package will then
1
 
 be finalized.
ALL RESPONSES SHOULD BE TYPEWRITTEN OR NEATLY PRINTED
- Attach separate sheets as necessary -
FRANCHISE AGREEMENT QUESTIONNAIRE
1.
Identity of Franchisor
. Please give us the name of the franchisor, type of organization (for example, corporation, partnership) and state and county of organization.
We would suggestthat you give consideration to forming a new entity to become the franchisingcompany to protect not only your personal assets but also the assets of your existingcompany
.
There are some accounting reasons to do this as well if your presentcompany does not have audited financial statements.
 (a)Name of entity:(b)Type of entity:(for example, corporation)(c)State of organization:(d)Principal business address (including county):If already formed, send us your corporate minute book or partnership agreement.2.000
Description of Your Franchise System
. Please describe as clearly and succinctly as possible your franchising concept and the trade name under which company-owned units andfranchised units will be operated.(a)Franchising Concept:(b)Trade name under which all units will do business: 3.000
Site Selection.
 (a)Will the franchisee always have secured a site before signing the franchise agreement,or will you sometimes designate a reserved area within which he or she may select aspecific site, which will occur after the franchise agreement is signed?
Specific site
Reserved area
 
Describe:(b)Will the franchisee be solely responsible for selecting a site, with your approval?
Yes
No(c)If a site may be selected after the franchise agreement is signed, how long will thefranchisee have to select a site? We generally suggest up to 6 months from the datethe franchise agreement is signed: __________ months(d)If a site is not selected within the time period, do you want right to terminate theagreement?
Yes
NoIf yes, what portion of the franchise fee or other prepaid items would you refund? If no, what remedy do you want? ______________________________________ (e)Can the franchisee engage in take-out or home delivery?
Yes
No(f)Can the franchisee solicit business outside his or her area of dominant influencethrough the use of an 800 number, catalog, direct mail or other advertising or solicitation method?
Yes
No4.000
Protected Territory
. Many franchisors give, and most franchisees expect, a protectedterritory within which no other franchisee or company unit will be located. However, notgranting a protected territory gives you the most flexibility in determining the number of unitsa market can handle. Please give thought as to whether you want to provide a protectedterritory.
The Fair Franchising Standards require you to give a franchisee reasonablemarket protection.
 No Protected Territory - street address only
Circular area having a ______ - mile radius from the premises
An area having _________ persons or houses, etc.
Other - Describe:
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...