Franchise Disclosure Law

Franchise Disclosure Law requires franchisors to provide prospective franchisees with a detailed disclosure document before they sign any agreement or make any payment. This document outlines important information about the franchise, such as costs, history, legal obligations, and potential risks, ensuring transparency and allowing informed decision-making. The goal is to protect franchise buyers from surprises, fraud, or misrepresentation by ensuring they have all relevant facts upfront. Each state may have specific regulations, but the core purpose is to promote honesty and fairness in the franchising process.