Simple English definitions for legal terms
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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.
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.
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.