A number of states require franchisors to provide presale disclosures to prospective franchisees.

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This statement is true. Many states have franchising laws that mandate pre-sale disclosure requirements on franchisors. These requirements aim to ensure that potential franchisees receive important information about the franchise opportunity before any agreement is made. Such disclosures may include details about the franchisor's financial condition, franchise fees and costs, litigation history, obligations of both parties, training and support, and other information relevant to the franchise operation.

A Number of States Require Franchisors to Provide Presale Disclosures