Which of the Following Does the FTC Franchise Rule Require

question 46

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) A 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:

Forbearance

A creditor's agreement to postpone, delay, or withhold legal action despite the debtor's failure to meet the terms of the contract.

Statute Of Limitations

A federal or state statute setting the maximum time period during which a certain action can be brought or certain rights enforced.

Consideration

Something of value exchanged between parties in a contract, which is required for the agreement to be legally binding.

Estopped

Barred, impeded, or precluded.