[1] The Federal Trade Commission Rule of 1979 which governs the disclosure of essential information in the sale of franchises to the public underlies the state FDD's and prohibits any private right of action for the violation of the mandated disclosure provisions of the FDDs.
This franchise sales contract governs the long-term relationship – the terms of which generally range from five to twenty years.
The franchisor may provide a copy of its franchise disclosure documents on paper, via email, through a web page, or on a disc.
[2] According to the Federal Trade Commission,[3] there are 15 states that require franchisors to give an FDD to franchisees before any franchise agreement is signed.
Item 19, "Earnings Claims", is an optional disclosure under the FTC Rule and State FDDs.