What is the Disclosure Document?
The Federal Trade Commission (FTC), a federal government commission requires those selling franchises and other business opportunities to give potential investors the necessary information they require in order to arrive at a sound financial decision. It also mandates that all earnings claims be documented. Furthermore, the information that potential investors receive MUST be complete and accurate and that the investor is allotted enough time to analyze and investigate the disclosures PRIOR to making any final financial comittment. THis information is to arrive in the hands of the potential investor’s hands in the form of a “Disclosure Document” – this must be recieved at least 10 days before any purchase as well.
The Federal Trade Commission (FTC) requires sellers of franchises and other business opportunity ventures to provide prospective investors with the information they need to make an informed investment decision. It also requires that all earnings claims be documented, that the information investors receive be complete and accurate and that investors have adequate time to consider and evaluate the disclosures before making any final purchase commitment. All required information is given to prospective investors in the form of a franchise disclosure document, which must be furnished at least 10 business days before any purchase may occur. This document includes 20 important items of information, such as Names, addresses and telephone numbers of other franchisees. A fully audited financial statement of the seller. The cost required starting and maintaining the business. The responsibilities you and the seller will share once you buy a franchise. Litigation involving the company or its offi
The Federal Trade Commission (FTC) requires sellers of franchises and other business opportunity ventures to provide prospective investors with the information they need to make an informed investment decision. It also requires that all earnings claims be documented, that the information investors receive be complete and accurate and that investors have adequate time to consider and evaluate the disclosures before making any final purchase commitment. All required information is given to prospective investors in the form of a franchise disclosure document, which must be furnished at least 10 business days before any purchase may occur.
