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The franchisor must disclose any information requested by the franchisee; Cross-border franchising, with some caveats, is possible (2007 law). The franchisor must meet a list of requirements for registration, among which are: The standard franchise agreement, working manual and working capital requirements,
The FTC announced an update to the franchise Rule on January 23, 2007, becoming effective July 1, 2007. [2] The most recent version of the FTC franchise rule was in 2007, is printed in FR 2007a, pp. 15544–15575. After July 2008, all franchisors in the United States are to use the Franchise Disclosure Document with potential franchisees.
A franchise agreement is a legal, binding contract between a franchisor and franchisee. In the United States franchise agreements are enforced at the State level.. Prior to a franchisee signing a contract, the US Federal Trade Commission regulates information disclosures under the authority of The Franchise Rule. [1]
Ongoing training and support - How effective is the ongoing support services of the franchisor in terms of helping franchises deal with problems that come up in the running of their business. Advertising, marketing and promotional programs - Most franchisors collect marketing dollars from every franchisee into a pool that is spent to promote ...
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Investing in a financially unstable franchisor is a significant risk; the company may go out of business or into bankruptcy after a franchisee has invested its money. A lawyer or an accountant can review the franchisor’s financial statements, audit report, and notes. They can help a franchisee understand whether the franchisor: has steady growth
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related to: how to become a franchisorbizquest.com has been visited by 10K+ users in the past month
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- 4660 Cemetery Rd., Hilliard, OH · Directions · (614) 468-8180