Franchise Investment Law

Franchise Investment Law refers to regulations that protect potential franchisees (business buyers) in their investments. These laws require franchisors (business sellers) to provide detailed information about their franchise, including financial performance, fees, and obligations, before a sale. The goal is to ensure transparency and fairness, allowing franchisees to make informed decisions and reducing the risk of fraud or misleading claims. Different countries and states have specific laws governing these practices, often requiring a Franchise Disclosure Document (FDD) to be provided to potential buyers.