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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
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Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Under the FTC a franchisor must provide disclosures to a franchisee.

Resolved Question:

Under the FTC a franchisor must provide disclosures to a franchisee. Once the franchise agreement is signed, does a franchisor have a continuing duty to update the disclosures?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
Once the agreement is signed there is no obligation to update the UFOC for that transaction because there is already a binding contract in place, so any additional disclosure does not void the contract (franchise agreement). Once the franchisee has signed it is presumed that their due diligence was conducted and if anything changes with the franchisor after the agreement is signed it does not serve to void the signed franchise agreement.

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