Franchise Disclosure Requirements

Franchise Disclosure Requirements refer to legal obligations that franchisors must fulfill before selling a franchise. These requirements typically involve providing potential franchisees with a Franchise Disclosure Document (FDD), which outlines essential information about the franchise, including fees, financial performance, training, and the franchisor's background. The FDD helps prospective franchisees make informed decisions by ensuring transparency and reducing the risk of misunderstandings. These rules aim to protect both the franchisee and the integrity of the franchise system, fostering fair business practices.