Under the FTC Franchise Rule (16 CFR Part 436), what is the minimum amount of time a franchisor must furnish a prospective franchisee with the Franchise Disclosure Document (FDD) before the prospective franchisee may sign a binding agreement or pay any consideration?
Ftc Franchise Rule
Question · Easy
How many separately numbered disclosure items does the FTC Franchise Rule require in a Franchise Disclosure Document?
Which of the following is NOT one of the three elements of a 'franchise' under the FTC Franchise Rule (16 CFR §436.1(h))?
A franchisor wishes to include a Financial Performance Representation (FPR) in its FDD. Under 16 CFR §436.5(s), which of the following statements about FPRs is correct?
Question · Medium
Under the FTC Franchise Rule, a franchisor must update its FDD when?
In Item 20 of the FDD, what historical period of system outlet information must a franchisor disclose?
Which Item of the FDD discloses the franchisor's audited financial statements?
Which Item of the FDD requires disclosure of all material litigation involving the franchisor and its predecessors, affiliates, officers, directors, and key managers?
Under the FTC Franchise Rule, the 14-day disclosure window begins running when?
A franchisor presents the prospective franchisee with a final franchise agreement and asks them to sign it on the 13th calendar day after delivery of the FDD. Under the FTC Franchise Rule, this is:
Under the FTC Franchise Rule, after the franchisor and franchisee finalize the negotiated form of the franchise agreement, when must the franchisor deliver the agreed-upon final agreement before signing?
Which of the following payments by a prospective franchisee would NOT trigger the FTC Franchise Rule's 'required payment' element under 16 CFR §436.1(h)(3)?
Question · Hard
Under the FTC Franchise Rule, which of the following is the inflation-adjusted minimum required-payment threshold (in effect since 2024) above which a payment, when combined with all required payments within the first six months, triggers franchise treatment?
Which Item of the FDD discloses estimated initial investment, including pre-opening costs and additional funds needed for an initial period of operation?
A franchisor's sales representative tells a prospective franchisee orally that 'most of our locations make about $250,000 in net profit annually,' but the FDD contains no Item 19 Financial Performance Representation. This statement is:
Item 17 of the FDD discloses information about which of the following?
Which of the following is NOT a Rule-enumerated exemption from the FTC Franchise Rule?
Under the FTC Franchise Rule, a 'fractional franchise' is exempt from disclosure when it satisfies which condition?
The FTC's enforcement remedies for violations of the Franchise Rule include all of the following EXCEPT:
Under Item 19, if a franchisor makes an FPR based only on company-owned outlets, the FPR must:
Under the California Franchise Investment Law (CFIL), Corporations Code §31000 et seq., what is the primary purpose of the Act?
California Franchise Investment Law
Under CFIL, before a franchisor may offer or sell a franchise in California, it must:
Which California agency administers and enforces the CFIL?
Under CFIL §31005, the definition of 'franchise' requires three elements. Which of the following is NOT one of them?
Under CFIL, 'franchise fee' is defined under Corporations Code §31011. Which of the following is excluded by statute?
Under CFIL, a registered franchise offering becomes effective:
What is the standard filing fee for an initial franchise registration application under CFIL?
Under CFIL, the anti-fraud provision in Corporations Code §31201 prohibits:
Under CFIL §31300, a person who offers or sells a franchise in violation of §31110 (registration) or §31201 (anti-fraud) is liable to the franchisee for:
What is the statute of limitations under CFIL §31303 for an action based on a violation of §31201 (anti-fraud)?
Under CFIL §31106, a franchise offering is exempt from registration where the franchise fee is less than which amount?
Under CFIL, an 'experienced franchisor' exemption is available under Corporations Code §31101 when the franchisor meets specified net-worth and outlet thresholds. Which of the following is required?
Under CFIL, who may be held jointly and severally liable with the franchisor under §31302 for a violation of §31201?
Under CFIL, a written waiver of compliance is:
In Kim v. Servosnax, Inc. (1992) 10 Cal.App.4th 1346 and similar California decisions, courts have held that a 'marketing plan or system prescribed in substantial part by the franchisor' under §31005 requires:
Under CFIL, an annual renewal application must be filed:
Under CFIL, what action may the Commissioner take where it appears that a franchisor has engaged or is about to engage in any act constituting a violation of the law?
Under CFIL §31410, a willful violation of the registration provisions is punishable as:
The California Franchise Relations Act (CFRA), Business & Professions Code §§20000–20043, primarily regulates which aspect of the franchise relationship?
California Franchise Relations Act
Under Business & Professions Code §20020, except as otherwise provided, a franchisor may terminate a franchise only:
Under CFRA §20020, the default cure period that must be afforded before termination for breach is at least:
Under Business & Professions Code §20021, immediate termination without an opportunity to cure is permitted when:
Under CFRA §20025, a franchisor may decline to renew a franchise agreement only if:
AB 525 (effective January 1, 2016) amended CFRA to provide what remedy upon a wrongful termination or non-renewal in violation of the statute?
Under CFRA as amended by AB 525, what is the standard for terminating or refusing to consent to a transfer of a franchise?
Under Business & Professions Code §20040.5, a provision in a franchise agreement requiring a California franchisee to litigate or arbitrate disputes outside California is:
In Bradley v. Harris Research, Inc. (9th Cir. 2001) 275 F.3d 884, the Ninth Circuit held that Business & Professions Code §20040.5:
Under CFRA, the statutory definition of 'franchise' in Business & Professions Code §20007:
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