The FTC mandates that franchisors make full presale disclosure nationwide to prospective franchisees.

Question

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The FTC (Federal Trade Commission) requires franchisors to provide a Uniform Franchise Disclosure Document (UFDD) to prospective franchisees at least 14 days before the signing of any agreements. The disclosure must contain detailed information about the franchise system, including financials, litigation, fees, and obligations. This mandate applies to franchises throughout the United States.

The FTC Mandates That Franchisors Make Full Presale Disclosure Nationwide