Master franchisees must normally comply with certain plans for the development of franchised units that may be operated exclusively by the master franchisee or its sub-franchisees. It is unusual for development officers to be required to adhere to a development plan, when it is customary to include specific objectives for agents in the corresponding agency contract. One of the first successful U.S. franchise operations was launched by an enterprising druggist named John S. Pemberton. In 1886, he concocted a drink of sugar, molasses, spices and cocaine. Pemberton allowed selected people to be able to bottle and sell the drink, which was an early version of what is now called Coca-Cola. It was one of the first – and most successful – franchise operations in the United States. Once the ten-day waiting period for Confederation has ended, the franchise agreement becomes a document of competence at national level. Each state has unique franchise agreement laws. Through franchising, a franchisee grants a manufacturer the right to manufacture and sell goods using their name and trademark. This type of franchise is common among food and beverage companies.

For example, soft drink bottlers often obtain franchise rights from soft drink companies to produce, bottle and distribute soft drinks. Large soft drink companies also sell the deliveries to the regional production franchise. In the case of Coca Cola, for example, Coca Cola sells the syrup concentrate to a bottling company that mixes these ingredients with water and bottles and resells the product. 126. The purpose of the disclosure document is to provide the potential franchisee with information enabling them to make an informed decision as to whether or not to acquire the franchise offered to them. The information contained in the disclosure document is therefore essential. In addition, Article 8 allows the franchisee to terminate the franchise agreement or claim damages if the franchisor does not disclose, if the disclosure document contains a misrepresentation or if a substantial fact has not been disclosed. It is therefore important for the franchisee to be able to prove that the franchisee has received the disclosure document. Section 7 recognizes this importance by stipulating that the prospective franchisee must, at the request of the franchisee, confirm in writing that he has received the disclosure document.

National legislators may wish to consider whether such an acknowledgement of receipt of the disclosure document should be mandatory or not. The purpose of such a binding provision encourages the potential franchisee`s attention to the importance of the disclosure document and to ensure that franchisees make potential franchisees subject to the disclosure obligation when necessary. . . .

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