Author Question: Trudy wishes to buy a national franchise. What information is the seller legally required to provide ... (Read 106 times)

futuristic · **on:** Jun 24, 2018

Trudy wishes to buy a national franchise. What information is the seller legally required to provide before she buys the franchise?

Question 2

Within the structure of the World Trade Organization, the three important groups under the Ministerial Conference are:
A) the General Council, the Secretariat, and the Trade Policy Review Body.
B) the Committee on Budget, the General Council, and Trade Policy Review Body.
C) the Dispute Settlement Body, the General Council, and the International Court of Justice.
D) the Dispute Settlement Body, the General Council, and the Trade Policy Review Body.

mochi09 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

The Federal Trade Commission requires the seller of the franchise to provide Trudy with a Franchise Disclosure Document (FDD) at least 14 calendar days before any contract is signed or money is paid. This disclosure statement must provide the following information:
The history of the franchisor and its key executives
Litigation with franchisees
Bankruptcy filings by the company and its officers and directors
Costs to buy and operate a franchise
Restrictions, if any, on suppliers, products, and customers
Territory-any limitations (in either the real or virtual worlds) on where the franchisee can sell or any restrictions on other franchisees selling in the same territory
Business continuity-under what circumstances the franchisor can terminate the franchisee and the franchisee's rights to renew or sell the franchise
Franchisor's training program
Required advertising expenses
A list of current franchisees and those that have left in the prior three years
A report on prior owners of stores that the franchisor has reacquired
Earnings information is not required; but if disclosed, the franchisor must reveal the basis for this information
Audited financials for the franchisor
A sample set of the contracts that a franchisee is expected to sign

Answer to Question 2

D