The Franchise Disclosure Document (FFD) is an important legal document that franchisor’s must give to potential franchisees before signing a franchise agreement. The Federal Trade Commissions governs the contents of the FDD. The FTC rules cover twenty-three specific disclosure items.
A franchisor needs to provide the FDD (formerly known as the uniform franchise disclosure document) 14 calendar days before the potential franchisee pays any fees or signs a contract.
The Franchise disclosure document is a product of the dark days of franchising when salesmen would greatly inflate the sales projections upon unsuspecting business owners.… Read the rest
Considering buying a franchise? Ask existing franchisee operators about the business before you become a franchisee. The last thing you want is to become another unhappy franchisee.
It is important to do your due diligence before you sign the franchise agreement. Naturally, you will ask the franchisor questions about the franchise, but it’s equally important to converse with owners already in the business. Once you have made a commitment to explore the franchise opportunity (and are not just tire kicking) you should develop a plan to speak with existing franchisees.… Read the rest
CAM charges are common in a triple net (NNN) lease. A NNN lease will pass through 1) taxes, 2) insurance and 3) common area maintenance charges to tenants. Common area maintenance charges represent those expenses the landlord incurs to maintain those portions of the property that (theoretically) all tenants enjoy.
What Is ‘CAM’ or Common Area Maintenance?
CAM charges represent the fee tenants pay to the landlord to compensate the landlord for its maintenance, repair, and operation of the non-exclusive areas of the premises.… Read the rest
A quiet title action is a lawsuit started to settle a dispute as to ownership in real property. In Michigan, quiet title actions are authorized by law. The goal of the suit is to cure problems in the chain of title and to have a court determine the precise ownership of real estate. Sometimes a quiet title suit can be “friendly” against other parties and sometimes it can be quiet contentious depending on the situation.
Quiet title actions are common when a property owner wants to retain possession or ensure that title is marketable for future sale.… Read the rest
Why should someone use an attorney for closing a real estate transaction? In Michigan, a real estate attorney ensures that every piece of the deal is in place and in order. The role of the attorney depends on the complexity of the deal. In smaller transactions, an attorney may take a less involved role and may only review documents. In larger, more complex deals the attorney will negotiate substantively with the other side and will manage a multi-faceted closing.… Read the rest