Which document provides information to possible new franchisees on twenty items required by the Federal Trade Commission?
A) Business plan agreement
B) Disclosure statement
C) Marketing statement
D) Accounting statement

Question

Quizplus · Accepted Answer

The document that provides information on the twenty items required by the Federal Trade Commission is called a Disclosure Statement, as mandated by the FTC's Franchise Rule. This document must be provided to potential franchisees at least fourteen days before any agreement is signed. The other options, business plan agreement, marketing statement, and accounting statement, do not necessarily include all of the required information mandated by the FTC.

Which Document Provides Information to Possible New Franchisees on Twenty