At the federal level, franchises are regulated by the FTC. To start a franchise you have to comply with certain laws and regulations at the federal and state levels. In certain states, the franchise companies have to register and receive approval from the state to set up franchises.

You will receive the FTC Disclosure Document(Federal Trade Commission Disclosure Document) at your first face-to-face meeting about setting up the franchise. The FTC Disclosure Document provides information about the franchise and includes various disclosure terms that form a part of the agreement.