disclosure document

Currently required under the laws of fifteen states, a disclosure document is provided by the franchisor to a prospective franchisee. The document contains information about the franchisor, the franchise being offered, and the terms and conditions of the legal relationship into which the franchisee will enter. The state agency that administers the franchise laws typically reviews the document and other pertinent materials the franchisor will use in promoting the sale of the franchise. Also see “Franchise Disclosure Document .”

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