Where Does the FTC Franchise Notice Appear

question 77

Multiple Choice

Where does the FTC franchise notice appear?

• A) in the licensing agreement between the franchisor and franchise
• B) as a separate clause in the franchise agreement
• C) on the cover of a franchisor's required disclosure statement
• D) on the cover of a franchisee's required disclosure statement

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, with voting rights and the potential for dividends.

Articles of Incorporation

A document filed with a government body to legally document the creation of a corporation; synonymous with Corporate Charter but varies by jurisdiction.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the earnings investors are making from dividends.

Cash Dividends

Earnings given by a corporation to its investors, usually in the form of profit sharing.