Which of the Following Is Not Part of the FTC

question 17

Multiple Choice

Which of the following is not part of the FTC franchise rule?

• A) Franchisors must make certain additional disclosures if sales projections are included in materials.
• B) The Uniform Franchise Offering Circular meets the requirements of the FTC franchise rule.
• C) The rule contains certain minimum disclosures that must be made to prospective franchisees.
• D) The disclosure materials must be filed with the FTC.
• E) Franchisors in violation are subject to civil fines of up to $10,000 per violation.

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Definitions:

Seller

A person or entity that offers a product or service for sale.

Conglomerate Merger

A merger between companies operating in unrelated business activities, often aimed at diversification and risk management.

Noncompeting Firms

Businesses operating in different markets or sectors and thus do not compete directly with each other for customers.

Unrelated Goods

Products that are not associated or commonly linked together in the context of production, use, or consumption.