Which of the following statements about a franchise is correct?
A) Start-up is simple with very little filing.
B) A franchise faces mandatory disclosures.
C) All transactions of a franchise are protected by privacy laws.
D) A franchise only faces state regulations.

Question

Quizplus · Accepted Answer

Franchises are subject to mandatory disclosures, such as the Franchise Disclosure Document (FDD), which provides prospective franchisees with information about the franchisor, the franchise system, and the agreements they will need to sign. This ensures transparency and helps franchisees make informed decisions.

Which of the Following Statements About a Franchise Is Correct