Business Management Case Study; Over Disclosure Puts Franchisors at a Competitive Disadvantage

The regulatory bodies at both the state and federal level require much disclosure from Franchisors. So, much information in fact that it indeed puts them at a disadvantage to both their foreign and domestic competitors who may not be franchise companies and therefore do not require the same level of disclosures. The Uniform Franchise Offering Circulars or UFOCs.

Therefore a business management team needs to discuss these issues of over disclosure and how they put franchising companies at a competitive disadvantage before attempting to use franchising as a method to extend brand name and reach into the marketplace. Please consider all this in 2006.

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