The franchisee has the right to have all questions answered by the franchisor before signing the contract. Among this information may be information on past lawsuits against the franchisor and initial franchise fees and other required payments.

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According to the Federal Trade Commission's Franchise Rule, franchisors are required to provide a Franchise Disclosure Document (FDD) to potential franchisees at least 14 days before they sign any contract. The FDD contains information regarding the franchisor's litigation history, initial franchise fees, and other required payments. The franchisee has the right to review and ask questions about this document before signing any contract.

The Franchisee Has the Right to Have All Questions Answered