Uniform Franchise Offering Circular (UFOC) was the standardized disclosure document franchisors were required to provide to prospective franchisees before 2007. It contained 23 items of essential information about the franchise system, fees, legal obligations, and more. The UFOC has since been replaced by the Franchise Disclosure Document (FDD).
Uniform Franchise Offering Circular (UFOC) was the legally required document that franchisors used to disclose information to potential franchisees in the United States prior to 2007. The UFOC aimed to promote transparency and protect prospective buyers by standardizing the information all franchisors had to present. It included 23 disclosure items such as the franchisor’s background, litigation history, startup costs, fees, territory rights, trademarks, and audited financial statements. While the content was consistent across companies, the format could vary slightly. In 2007, the Federal Trade Commission (FTC) replaced the UFOC with the Franchise Disclosure Document (FDD), aligning disclosures with new federal regulations and improving clarity for prospective franchisees. Though the UFOC is no longer in use, the term still appears in older documents and discussions and is historically significant to the evolution of U.S. franchise law.
This term is no longer used. Please see “Franchise Disclosure Document ”
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The UFOC was first introduced in the 1970s by the North American Securities Administrators Association (NASAA) as a response to increasing concerns about unethical franchising practices. It created a consistent disclosure format that states could adopt to regulate franchises. In 1979, the FTC issued its original Franchise Rule, and by the 1990s, the UFOC format had become the industry standard. However, due to inconsistencies and a lack of federal uniformity, the FTC overhauled its rule in 2007 and formally replaced the UFOC with the Franchise Disclosure Document (FDD). This shift enhanced consumer protections and made franchise documents more accessible and readable, while aligning state and federal disclosure standards.
Uniform Franchise Offering Circular (UFOC) was the original standardized disclosure document required in U.S. franchising before 2007. While no longer in use, it played a vital role in shaping modern franchise regulation by establishing consistent disclosure practices. Today, the Franchise Disclosure Document (FDD) has taken its place, but understanding the UFOC is still important for evaluating legacy systems or understanding the historical evolution of franchise law.
