Answered By: Erin Wachowicz
Last Updated: Apr 04, 2018     Views: 5

The Federal Trade Commission requires all franchisors to provide information to potential franchisees.  

According to the FTC website:

16 CFR Parts 436 and 437

RULE SUMMARY:

The Franchise Rule gives prospective purchasers of franchises the material information they need in order to weigh the risks and benefits of such an investment. The Rule requires franchisors to provide all potential franchisees with a disclosure document containing 23 specific items of information about the offered franchise, its officers, and other franchisees. 

This information is provided in a Franchise Disclosure Document or FDD.  These documents often cost money, but there are three states that make FDDs available online. Learn more about those here: https://franchisealchemy.com/how-to-get-free-fdds/

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