The FTC Franchise Rule requires 23 disclosure items. Establish applicability before assembling operating, fee, support and contract records.

Establish the rules first

The FTC’s official Franchise Rule summary says franchisors must provide prospective franchisees with a disclosure document containing 23 specified information items. This does not determine a particular transaction’s coverage, exemptions or state-law obligations. Labels such as “agency” or “brand licence” do not resolve applicability.

Records to start assembling

  • Company and management: operating entities, principals, trading history and required disclosures.
  • Fees and supply: initial and continuing charges, required purchasing, territory and online boundaries.
  • Support: responsibilities and costs for training, site selection, opening and ongoing assistance.
  • Contracts and finance: versions, renewal, exit, financial and outlet information required by law.

Align disclosure and recruitment

Vanmei recommends a local franchise-law assessment before aligning websites, presentations and sales statements. Earnings promises cannot be repaired simply by later contract language. Translating a domestic brochure is not a complete market-entry process.

This checklist does not establish that a brand qualifies to franchise in the US or replace project-specific legal review.

Sources

  1. FTC Franchise Rule: official summaryFederal Trade Commission

Prepared from the public sources listed below. Source facts and Vanmei’s practical recommendations are identified separately. Check product availability, regulatory scope and subsequent changes with the originating organisation.