The franchise laws were generally effective in achieving their
Intended results to provide prospective investors in franchises a
Substantial body of information to allow the investor to compare
offerings, and to make an informed judgment as to the suitability
and merits of the franchise opportunity presented. The laws are
also intended to provide franchise investors with legal remedies
against those franchisors that fail to make the prescribed
disclosures, misstate important information in the franchise
Disclosure Document, or leave out important imformation
necessary to make what was disclosed fully accurate. The laws
were never intended to,and do not, protect investors from making
bad investment judgments1, or to protect investors against
franchise programs run by companies that are incompetent,
arrogant or simply unsuccessful.
The franchise laws were generally effective in achieving theirIntended results to provide prospective investors in franchises aSubstantial body of information to allow the investor to compareofferings, and to make an informed judgment as to the suitabilityand merits of the franchise opportunity presented. The laws arealso intended to provide franchise investors with legal remediesagainst those franchisors that fail to make the prescribeddisclosures, misstate important information in the franchiseDisclosure Document, or leave out important imformationnecessary to make what was disclosed fully accurate. The lawswere never intended to,and do not, protect investors from makingbad investment judgments1, or to protect investors againstfranchise programs run by companies that are incompetent,arrogant or simply unsuccessful.
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