Legal Compliance

Franchise Legal Compliance

 As a franchise we have to obey the franchise laws. The franchise disclosure document (FDD) is our legal document that discloses the information about the franchise, franchisor, and investment. You need to provide your prospects with the FDD as soon as they request it (as long as we are approved in their state), or if they haven’t requested at the earliest time you see fit during the sales process. We usually try to do this around the time that the prospect attends a Discovery Day. When they acknowledge that they received it then the holding period starts. The prospect needs to hold it for full 14 calendar days, that does not include the day that they received it. After that they can submit payment and sign the franchise agreement with us (we always talk about 16 day holding period).

We have received an approval to offer and sell franchises in all the states. However, keep in mind that each year when we renew our FDD, some states may take longer to approve them than others, so during that time we can’t offer or sell franchises there.  

The state tracking chart below will help you keep track of where we are approved. So please do not offer franchises to anyone living in states and/or is planning on opening up an office in states where we are not approved. If you have a prospect in a state where we are not approved, simply let them know that at this time we can not offer a franchise as we are waiting on State approval. 

Keep in mind that some states require a fee deferral until we have completed our pre-opening obligations and some until the Zee is open for business. You will see those requirements listed on the State Tracking Chart in the link below. 

There are quite a few things that we need to be careful about during the sales process and the video below will cover those things as well as we will go over the FDD a little bit.

Here you can access the most current FDD – Franchise Disclosure Document

Here you can access the state tracking chart – State Tracking Chart

Here you can access our legal compliance manual – 1st Class Legal Compliance Manual

*REMEMBER YOU CAN MAKE THE VIDEO FULL SCREEN BY CLICKING THE SQUARE LOOKING ICON IN THE BOTTOM RIGHT CORNER