Restrictions on What the Franchisee May Sell | Franchise Disclosure Document | Item 16

Item 16: Restrictions on What the Franchisee May Sell

Like the UFOC Guidelines, the amended Rule’s Item 16 calls for disclosure of any restrictions relating to the goods or services a franchisee sells, including:

• any restriction allowing only sales of franchisor-approved goods or services;
• any restriction requiring a franchisee to sell all goods or services authorized by the franchisor; and
• whether the franchisor has the right to change the types of authorized goods or services and whether there are any restrictions on the franchisor’s right to make such changes.

This article is part of a series of articles on starting a franchise in Minnesota.

CREDIT: The content of this post has been copied or adopted from the Federal Trade Commission’s Franchise Rule Compliance Guide.