Franchisors frequently lose sight of the fact franchise disclosure documents should be customized to each franchisee and location. When a disclosure document is prepared by a franchise lawyer for the first time, it is typically a pro forma or template document to serve as a starting point for soliciting franchisees.
However, the franchisorâ€™s legal obligations to provide proper disclosure do not end with a templated document. The requirement to tailor disclosure documents to a recipient is most pronounced when considering the disclosure of leasing issues. Failure to do so may result in a deficient disclosure document. Read full article.
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