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Asked by Patricia Garcia on May 25, 2024

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The Franchise Rule does not require a franchisor to make any disclosures to prospective franchisees but what is disclosed must be material and informative.

Franchise Rule

Regulations established by governmental bodies to govern the sale and operation of franchises for the protection of franchisees.

Disclosures

The action of making new or secret information known, often a requirement in legal, financial, or commercial settings to ensure transparency.

Prospective Franchisees

Individuals or entities in the process of considering or negotiating to become franchise owners.

  • Perceive the legal demands, rights, and obligations synonymous with franchising.
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KM
kokilaben mehtaMay 29, 2024
Final Answer :
False
Explanation :
The Franchise Rule requires franchisors to provide all prospective franchisees with a Franchise Disclosure Document (FDD) that contains extensive information about the franchisor, the franchise system, and the agreements to be signed, to ensure they make informed decisions.

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