Some states provide exemptions for certain franchise arrangements including franchises and sales to existing franchisees.All fifteen states require pre sale disclosure to prospective franchisees. Pursuant to the New Uniform Franchise Offering Circular Guidelines ( you are required to provide comprehensive disclosure regarding: yourself, your predecessors, Cheap Jerseys free shipping officers, directors and salesmen; the franchise being offered; the terms of the franchise relationship; projections of actual or average results of operation of franchised and/or franchisor owned outlets; and their financial statements or those of their parent.All fifteen franchise law states but Oregon also require some form of pre sale franchise registration or notification with a state administrator. Registration may be denied or cheap jerseys suspended if you fail to comply with the law; fail to meet the conditions of registration required by statute; have inadequate financial resources; employ personnel with unacceptable backgrounds (that is, with a criminal or administrative litigation history); offer a franchise with fraudulent or deceptive elements; or offer a franchise with unfair or inequitable terms.As a prospective franchisor in one of these states, it is important to note that disregard of these requirements can result in civil liability and the imposition of severe criminal penalties.3.2.2 Federal Franchise Disclosure LawsThe Federal Trade Commission ( trade regulation rule also requires pre sale disclosure of certain relevant information to prospective franchisees.
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