May a franchisor use separate charts in Item 17 for different types of franchise agreements?
Yes. A franchisor always can use separate charts for different agreements (e.g., subfranchisor agreements), whether those be in Item 17, Item 20, or other disclosure items. As noted in the Statement of Basis and Purpose, the amended Rule should be applied in a manner that is consistent with historic practices. For instance, with respect to this particular issue, the NASAA commentary on Item 20 specifically states that franchisors should use separate charts for statistics reflecting a subfranchisor’s region and for statistics reflecting national data for the franchise being offered. The use of separate charts for different agreements fosters precision and clarity, consistent with the goal of full and accurate disclosure. • The amended Rule prohibits a franchisor from failing, “upon reasonable request,” to furnish a copy of its disclosure document to a prospective franchisee early in the sales process. What happens if a prospective franchisee asks for a copy of the disclosure document at
