Franchise disclosure: a US investor’s starting point

The Federal Trade Commission’s Franchise Rule governs disclosure in the United States. Disclosure information helps prospective investors assess a franchise offer before committing.

Review the franchisor’s background, obligations, costs and financial representations with qualified advisers. Disclosure is a starting point for investigation, not a guarantee of success.

The FTC framework is US-specific. Other countries have different legal requirements, and US state requirements may also apply. Obtain jurisdiction-specific legal advice.