Franchise disclosure document

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The Amended FTC Franchise Rule

Autor: Josan García Fecha: Coincidencia: 95,46%

... The U.S. Federal Trade Commission (“FTC”) requires that franchisors provide full and complete disclosure to a prospective franchisee through a written disclosure document. All franchisors offering and selling franchises in the U.S. had to convert their old disclosure documents to the new franchise disclosure document or FDD format required under the Amended Rule by July 1, 2008. The Amended Rule provides clarification, and flexibility, as to the method or media of disclosure. The Amended Rule permits franchisors to deliver the disclosure document in any manner that permits a prospect “to store, download, print, or otherwise maintain a copy for future reference.” This means that disclosure can be completed by e-mail as well as through a franchisor’s website. This change will allow franchisors to provide expense information to prospects without including a financial performance representation in their disclosure document. ...

DISCLOSURE , EVALUATING , FRANCHISOR

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