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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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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