Some states require franchisors to provide disclosure of information to prospective franchisees.

Question

Quizplus · Accepted Answer

This is true. These states have laws or regulations that mandate franchisors to provide certain information to prospective franchisees before entering into an agreement. The information provided should be in a franchise disclosure document (FDD) and includes details about the franchisor, the franchise system, litigation history, financial statements, and other relevant information.

Some States Require Franchisors to Provide Disclosure of Information to Prospective