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United States General Accounting OfficeGAOReport to Congressional RequestersJuly 2001FEDERAL TRADE
COMMISSION
Enforcement of the
Franchise RuleGAO01776ContentsLetter1
Results in Brief
Background
FTC's
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What is franchise rule?
The franchise rule is a regulation that governs the relationship between franchisors and franchisees. It outlines the obligations and responsibilities of both parties in a franchising agreement.
Who is required to file franchise rule?
Franchisors are required to file the franchise rule. They must provide certain information and documents to the appropriate regulatory agency.
How to fill out franchise rule?
Filing the franchise rule typically involves completing a specific form provided by the regulatory agency. Franchisors must provide detailed information about their business operations, financial statements, franchise agreements, and other relevant documentation.
What is the purpose of franchise rule?
The purpose of the franchise rule is to protect prospective franchisees by ensuring they have access to accurate and complete information about the franchisor and the franchise opportunity. It also promotes fair business practices in the franchising industry.
What information must be reported on franchise rule?
Franchisors must report various information on the franchise rule, including detailed financial statements, the terms and conditions of the franchise agreement, any litigation history, initial fees and recurring costs, and other relevant details about the franchise opportunity.
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