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People also ask
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What is the franchise investment law?
Overview of California Franchise Investment Law This law requires registration with the Department before a franchisor can offer franchises for sale. Franchisors are obliged to provide prospective franchisees with disclosure documents and final franchise contracts no less than 14 days before a franchise sale.
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What is the franchise law in the United States?
The primary franchise disclosure law relates to the federal mandate that a franchisor must disclose and provide to a prospective franchisee the franchisor's current and compliant franchise disclosure document no less than 14 days prior to signing any franchise agreement or accepting any funds from the franchisee.
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What is the FDD franchise law?
The Franchise Disclosure Document, also referred to as an "FDD," is a legal document and prospectus that the FTC requires franchisors to disclose to prospective franchise buyers 14 days before selling a franchise or receiving any fees.
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What does the FTC Franchise Rule require?
The Franchise Rule requires the pre-sale disclosure of material information to prospective franchisees about the franchisor, the franchised business, and the terms and conditions that govern the franchise relationship.
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