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Asked by Radhika Kalra on May 18, 2024

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The Franchise Rule requires a franchisor to establish and enforce rules with respect to its franchisees.

Franchise Rule

The Franchise Rule is a regulation created by the Federal Trade Commission (FTC) that mandates franchisors to provide all potential franchisees with a disclosure document containing essential information to help in making an informed decision about the investment.

Enforce Rules

The act of ensuring that the laws or regulations are followed and implementing consequences for those who violate them.

  • Comprehend the legal requirements, rights, and obligations associated with franchising.
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Loffor fongyiMay 18, 2024
Final Answer :
False
Explanation :
The Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document containing important information about the franchise, its officers, and other franchisees, but it does not require franchisors to establish and enforce rules with respect to its franchisees.

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