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The Amended FTC Franchise Rule

Autor: Josan García Fecha: Coincidencia: 96,87%

... The U.S. Federal Trade Commission (“FTC”) requires that franchisors provide full and complete disclosure to a prospective franchisee through a written disclosure document. Further, the franchisor must provide an estimated initial investment for a franchisee to enter into the franchise and it may, at its option, provide a financial performance representation (formerly referred to as an “earnings claim”). Under the old FTC Rule, franchisors were required to disclose prospective franchisees at the earlier of (a) the first personal meeting; or (b) 10 business days before a franchisee signs an agreement or pays any consideration. The “large franchisee” exemption exempts from disclosure franchise sales to a franchisee who is (or who has a parent or an affiliate who is) an entity that has been in business for at least five years and has a net worth of at least $5 million. ...

DISCLOSURE , EVALUATING , FRANCHISOR

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