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The Amended FTC Franchise Rule
... Similar to the UFOC Guidelines, the Amended Rule requires the franchisor to provide specific information about the franchisor, including its business experience and the business experience of its officers, directors and individuals with management responsibility, its litigation history and its bankruptcy history. 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 new disclosure standard includes civil actions that a franchisor initiates against a franchisee to enforce contractual obligations directly relating to the operation of the franchised business (such as royalty payment and training obligations). ...
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