The Franchise Rule requires franchise sellers to have their materials reviewed by the Federal Trade Commission before franchises may be sold to the public.

Question

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The Franchise Rule requires franchise sellers to provide all potential franchisees with a Franchise Disclosure Document (FDD) at least 14 days before money is exchanged, but it does not require the materials to be reviewed or approved by the Federal Trade Commission before they can be distributed to potential franchisees.

The Franchise Rule Requires Franchise Sellers to Have Their Materials