4. When is a franchisor required to provide a disclosure document (and to whom)?A franchisor must give a copy of the disclosure document, together with copies of the Franchising Code and the franchise agreement (in the form in which it is to be executed), to:
Under the code, a master franchisee (sometimes called a sub-franchisor) has the same disclosure obligations as the franchisor. This means that if a master franchisee is proposing to grant a sub-franchise to a prospective sub-franchisee, the franchisor and master franchisee must either give:
to the prospective sub-franchisee. A franchisor must also give to a franchisee a current disclosure document within 14 days after a written request by the franchisee. This request can only be made once in 12 months. |