UFOC
Sample UFOC
12006 CALIFORNIA UFOC | FINAL COPY
Uniform Franchise Offering
Circular
4199 Marcy Warren, Ml 48091 (586) 759-6000 Fax (586) 757-4737
Big Boy is a registered trademark of Big Boy Restaurants International LLC
© 2002 Big Boy Restaurants International LLC
UNIFORM FRANCHISE OFFERING CIRCULAR
BIG BOY FRANCHISE MANAGEMENT LLC
One Big Boy Drive
Warren, Michigan 48091
(586) 759-6000
INFORMATION FOR PROSPECTIVE FRANCHISEES REQUIRED BY FEDERAL TRADE COMMISSION
To protect you, we've required your franchisor to give you this information. We haven't checked it, and don't know if it's correct. It should help you make up your mind. Study it carefully. While it includes some information about your contract, don't rely on it alone to understand your contract. Read ail of your contract carefully. Buying a franchise is a complicated investment. Take your time to decide. If possible, show your contract and this information to an advisor, like a lawyer or an accountant. If you find anything you think may be wrong or anything important that's been left out, you should let us know about it. It may be against the law.
There may also be laws on franchising in your state. Ask your state agencies about them.
FEDERAL TRADE COMMISSION Washington, D.C.
i 1
UNIFORM FRANCHISE OFFERING CIRCULAR
BIG BOY FRANCHISE MANAGEMENT LLC
One Big Boy Drive Warren, Michigan 48091 (586) 759-6000 www.bigboy.com
Big Boy Franchise Management LLC ("Big Boy") offers franchises to develop, own and operate "Bij; Boy Restaurants" that sell the Big Boy® double-deck sandwich and breakfast, lunch and dinner items to the public under the name "Big Boy."
The initial franchise fee is $40,000. If you sign an Area Development Agreement, you pay a Development Fee equal to $5,000 times the number of Big Boy Restaurants you agree to develop. The estimated initial investment to open a Big Boy Restaurant ranges from $1,649,050 to $2,614,250.
Information comparing franchisors is available. Call the state administrators listed in the state agency Exhibit attached to this Offering Circular or your public library for sources of information.
Registration of this franchise by a state does not mean that the state recommends it or has verified the information in this Offering Circular. If you learn that anything in the Offering Circular is untrue, contact the Federal Trade Commission and the state administrator listed in the State Agency Exhibit.
RISK FACTORS:
THE FRANCHISE AGREEMENT PERMITS YOU TO SUE OR ARBITRATE WITH BIG BOY ONLY IN THE STATE OF MICHIGAN. OUT OF STATE LITIGATION OR ARBITRATION MAY FORCE YOU TO ACCEPT A LESS FAVORABLE SETTLEMENT FOR DISPUTES. IT MAY ALSO COST MORE TO SUE OR ARBITRATE WITH BIG BOY IN THE STATE OF MICHIGAN THAN IN YOUR HOME STATE.
THERE MAY BE OTHER RISKS CONCERNING THIS FRANCHISE.
EFFECTIVE DATE FOR THE STATES LISTED BELOW: APRIL 1, 2006
ALABAMA
ALASKA
ARIZONA
ARKANSAS
COLORADO
CONNECTICUT
DELAWARE
DISTRICT OF COLUMBIA
GEORGIA
IDAHO
IOWA
KANSAS
LOUISIANA
MAINE
MASSACHUSETTS
MISSISSIPPI
MISSOURI
MONTANA
NEVADA
NEW HAMPSHIRE
NEW JERSEY
NEW MEXICO
NORTH CAROLINA
OHIO
OKLAHOMA PENNSYLVANIA SOUTH CAROLINA TENNESSEE
VERMONT WEST VIRGINIA WYOMING
OTHER EFFECTIVE DATES
CALIFORNIA:
FLORIDA:
HAWAII:
ILLINOIS:
INDIANA:
KENTUCKY:
MARYLAND:
MICHIGAN:
MINNESOTA:
NEBRASKA
APRIL 14. 2006
Not filed
APRIL 25. 2006
Sell Illinois UFOC_
Not registered
Not filed
Not registered
MARCH 21. 2007
APRIL 14. 2006
Not filed
NEW YORK: NORTH DAKOTA: OREGON:
RHODE ISLAND:
SOUTH DAKOTA
TEXAS:
UTAH:
VIRGINIA:
WASHINGTON:
WISCONSIN:
Not registered
Mav 15. 2006
APIUL 1, 2006
Not registered
Not registered
Not filed
Not filed
Not registered
Not registered
APIUL 4. 2006
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NOTICE REQUIRED BY SECTIONS 8.1 AND 8.3 OF MICHIGAN FRANCHISE INVESTMENT LAW
THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
(A) A prohibition on the right of a Franchisee to join an association of Franchisees.
(B) A requirement that a Franchisee assent to a release, assignment, novation, waiver, or estopppel which deprives a Franchisee of rights and protections provided in the Michigan Franchise Investment Law. This section shall not preclude a Franchisee, after entering into a Franchise Agreement, from settling any and all claims.
(C) A provision that permits a Franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the Franchisee to comply with any lawful provision of the Franchise Agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days to cure such failure.
(D) A provision that permits a Franchisor to refuse to renew a franchise without fairly compensating the Franchisee by repurchase or other means for the fair market value at the time of expiration of the Franchisee's inventory, supplies, equipment, fixtures, and furnishings. Personalized materials which have no value to the Franchisor and inventory, supplies, equipment, fixtures, and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation. This paragraph applies only if:
(1) The term of the franchise is less than 5 years, and;
(2) The Franchisee is prohibited by the franchise or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising, or other commercial symbol in the same area subsequent to the expiration of the franchise or the Franchisee does not receive at least 6 months advance notice of Franchisor's intent not to renew the franchise.
(E) A provision that permits the Franchisor to refuse to renew a franchise on terms generally available to other Franchisees of the same class or type under similar circumstances. This section does not require a renewal provision.
(F) A provision requiring that arbitration or litigation be conducted outside the State of Michigan. This shall not preclude the Franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside the State of Michigan.
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(G) A provision which permits a Franchisor to refuse to permit a transfer of ownership of a franchise, except for good cause. This paragraph does not prevent a Franchisor from exercising a right of first refusal to purchase the franchise. Good cause shall include, but is not limited to:
(1) The failure of the proposed transferee to meet the Franchisor's then-current reasonable qualifications or standards;
(2) The fact that the proposed transferee is a competitor of the Franchisor or sub franchisor;
(3) The unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations; or
(4) The failure of the Franchisee or proposed transferee to pay any sums owing to the franchisor or to cure any default in the Franchise Agreement existing at the time of the proposed transfer.
(H) A provision that requires the Franchisee to resell to the Franchisor items that are not uniquely identified with the Franchisor. This paragraph does not prohibit a provision that grants to a Franchisor a right of first refusal to purchase the assets of a franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this subdivision prohibit a provision that grants the Franchisor the right to acquire the assets of a franchise for the market or appraised value of such assets if the Franchisee has breached the lawful provisions of the Franchise Agreement and has failed to cure the breach in the manner provided in section (C).
(I) A provision which permits the Franchisor to directly or indirectly convey, assign, or otherwise transfer its obligations to fulfill contractual obligations to the Franchisee unless provision has been made for providing the required contractual services.
THE FACT THAT THERE IS A NOTICE OF THIS OFFERING ON FILE WITH THE MICHIGAN ATTORNEY GENERAL DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION, OR ENDORSEMENT BY THE MICHIGAN ATTORNEY GENERAL. ANY QUESTIONS REGARDING THIS NOTICE SHOULD BE DIRECTED TO THE MICHIGAN DEPARTMENT OF THE ATTORNEY GENERAL, CONSUMER PROTECTION DIVISION, FRANCHISE UNIT, 670 LAW BUILDING, LANSING, MI 481*13, (517) 373-7117
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