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Cameron R.

Guest
What is the name of your state? CA

Does a franchisor have the obligation to disclose knowledge of disparaging statements and previous lawsuits brought by a federal agency against the very type of business that franchisor is offering? Some of this information would not have been found through "due diligence" but was known by franchisor as result of being in the field for years (an expert).

Also do the same general business transaction laws apply to franchise offerings?

Your answer is most appreciated.
 


HomeGuru

Senior Member
Cameron R. said:
What is the name of your state? CA

Does a franchisor have the obligation to disclose knowledge of disparaging statements and previous lawsuits brought by a federal agency against the very type of business that franchisor is offering?

**A: confusing question and if I understood what you're asking my response would be no, the franchisor must disclose information specific to the franchisor only and not the type of business of general information about similar type businesses.
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Some of this information would not have been found through "due diligence" but was known by franchisor as result of being in the field for years (an expert).

Also do the same general business transaction laws apply to franchise offerings?

**A: you need to be more specific.
 

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