Franchise Law
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Questions and Answers

What is the purpose of the Franchise Disclosure Document (FDD)?

  • To give franchisees the information they need to protect themselves and make good investments (correct)
  • To evaluate potential franchisees
  • To replace the Uniform Franchise Offering Circular (UFOC)
  • To require franchisors to disclose information on 23 important topics
  • What should potential franchisees do before making a decision to buy a franchise?

  • Consider franchise options
  • Evaluate themselves
  • Research the franchisor's FDD
  • All of the above (correct)
  • How many important topics are franchisors required to disclose in the FDD?

  • 30
  • 23 (correct)
  • 10
  • 15
  • What is the objective of the FDD?

    <p>To give franchisees the information they need to protect themselves and make good investments</p> Signup and view all the answers

    What should potential franchisees do after obtaining the franchisor's FDD?

    <p>Read it</p> Signup and view all the answers

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