Which of the Following Does the FTC Franchise Rule Require

question 28

Multiple Choice

Which of the following does the FTC franchise rule require from franchisors?

• A)registration of the disclosure document with the FTC before it's used
• B)full presale disclosures to prospective franchisees nationwide
• C)statement to fully finance the infrastructure necessary to bring the franchisee to the franchisor's standard
• D)disclosure of license agreement made with franchisee that lets the franchisee use the franchisor's service mark

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Definitions:

Anecdotal Accounts

Personal stories or observations used as evidence, which may not be scientifically validated.

Experiments

Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact through controlled observation and manipulation of variables.

Physical Energy

The capacity to do work, which may manifest in various forms such as kinetic, potential, thermal, electrical, chemical, nuclear, or other forms of energy.

Physical Objects

Material entities that occupy space and have mass, as opposed to abstract concepts or ideas.