Franchise Rule

The Franchise Rule is a federal regulation in the United States that requires franchisors to provide potential franchisees with important information before they agree to buy a franchise. This includes details about the franchise's business model, costs, and the obligations of both parties. The rule aims to ensure transparency and protect franchisees from deceptive practices, allowing them to make informed decisions. Franchisors must also provide a Franchise Disclosure Document (FDD) that outlines important aspects of the business, helping potential franchisees to understand what they are investing in.