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What information must be present in an FDD for a California franchise?

 

A: The information that must be present in an FDD for a California franchise is as follows: 

  1. The franchisor and any parents, predecessors or affiliates
  2. Business experience
  3. Litigation 
  4. Bankruptcy 
  5. Initial fees
  6. Other fees
  7. Estimated initial investment
  8. Restriction on sources of products or services
  9. Franchisee's obligations
  10. Financing
  11. Franchisors assistance, advertising, computer systems and training
  12. Territory 
  13. Trademarks
  14. Patents, copyrights and proprietary information  
  15. Obligation to participate in the actual operation of the franchise business
  16. Restrictions on what the franchisee may sell 
  17. Renewal, termination, transfer and dispute resolution
  18. Public figures
  19. Financial performance representations 
  20. Outlets and franchisee information 
  21. Financial statements
  22. Contracts 
  23. Receipts 
     




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