Creation of Franchise — Franchisor's Duty of Disclosure

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  6. Creation of Franchise — Franchisor's Duty of Disclosure

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A franchisor shall disclose in writing to any prospective franchisee, upon request of franchisee, the following information, before any agreement is concluded:

  1. The gallonage volume history, if any, of the location under negotiation for and during the three-year period immediately past or for the entire period during which the location has been supplied by the supplier, whichever is shorter;
  2. Projections of gallonage consumption, if any, which were used by the franchisor in making a decision to invest in the location under negotiation;
  3. The name and last known address of the previous dealers for the last three (3) years, or for the entire period during which the location has been supplied by the supplier, whichever is shorter;
  4. Any legally binding commitments for the sale, demolition, or other disposition of the location in effect prior to the termination date of the agreement;
  5. The training programs, if any, and the specific goods and services the supplier will provide with or without cost to the dealer;
  6. Full disclosure of any and all obligations which will be required of the dealer, including, but not limited to, any obligation to exclusively deal in any of the products of the supplier, its subsidiaries, or any other company or any advertising and promotional items that the dealer must accept; and
  7. Full disclosure of all restrictions on the sale, transfer, renewal, and termination of the agreement.


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