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 MODEL FRANCHISE DISCLOSURE LAW (2002)

Preamble

The International Institute for the Unification of Private Law (UNIDROIT),

Recognising that franchising is playing an ever greater role in a wide range of national economies,

Being mindful of the fact that in the legislative process, State legislators may wish to consider a number of different elements, including

•   whether it is clear that there is a problem, what its nature is, and what action, if any, is necessary;

•   whether prospective investors are more likely to protect themselves against fraud if they have access to truthful, important information in advance of their assent to any franchise agreement;

•   whether the nation’s economic and social interests are best served by legally requiring a balance of information between the parties to a franchise agreement;

•   whether there is a pattern of abusive conduct, or whether this conduct is isolated or limited to particular industries;

•   the nature

•