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LSDefine

Simple English definitions for legal terms

FTC franchise rule

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A quick definition of FTC franchise rule:

The FTC Franchise Rule is a law that requires companies selling franchises in the United States to provide potential franchisees with important information about the franchise. This information includes details about the company, fees, investment required, and other important information. The franchisor must provide this information at least 14 days before the franchisee signs any agreements or makes any payments. The FTC Franchise Rule also includes exemptions for certain types of sales, such as those with a low cost or large investment.

A more thorough explanation:

The FTC Franchise Rule is a law that requires franchisors (companies that offer franchises) to give potential franchisees (people who want to buy a franchise) important information about the franchise before they sign a contract or pay any money. This information includes details about the franchisor, fees, investment required, restrictions, and more.

  • If a company wants to sell a franchise in the US, they must follow the FTC Franchise Rule and provide the potential franchisee with a disclosure document at least 14 days before they sign a contract or pay any money.
  • If a franchisor changes the terms of the franchise agreement, they must give the potential franchisee a copy of the revised agreement at least 7 days before they sign it.
  • The disclosure document must include information about the franchisor's business experience, fees, investment required, restrictions, and more.
  • There are some exemptions to the FTC Franchise Rule, such as for franchises that cost less than $615 or for sales to large entities with a net worth of at least $6,165,500.

These examples illustrate how the FTC Franchise Rule works and what information franchisors must provide to potential franchisees. The rule helps protect potential franchisees from making uninformed decisions and ensures that they have all the necessary information to make a sound investment.

FTC | FTCA

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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