The disclosure document provided by the franchisor:
A) is required by the FTC.
B) will state a guaranteed yearly return for the franchisee.
C) is done on a voluntary basis.
D) has information that is certified by a CPA and the FTC so it is always a reliable source of data.

Question

Quizplus · Accepted Answer

The disclosure document, also known as the Franchise Disclosure Document (FDD), is required by the Federal Trade Commission (FTC) under the Franchise Rule. It provides important information about the franchisor and the terms of the franchise agreement to potential franchisees. The other options are incorrect as the FDD does not state a guaranteed yearly return, is not voluntary, and is not always certified by a CPA and the FTC.

The Disclosure Document Provided by the Franchisor