Franchising: Is the Franchise Disclosure Document Enough?

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According to an article on the International Law Office, a recent Colorado court decision leaves doubt for franchisors and franchisees about what needs to be disclosed in the Franchise Disclosure Document, the document that all franchisors must present to all prospective franchisees.

Although the decision relies on Colorado common law and states that franchisors might have a greater obligation to release financial information about the parent company to potential franchisees, it leaves the question open for franchises in other states about what they have to disclose.

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