---
kind: "section"
citation: "16 C.F.R. § 436.6"
title: "16"
number: "436.6"
heading: "Instructions for preparing disclosure documents."
url: "https://uscodex.org/cfr/16/436.6"
---

# §436.6. Instructions for preparing disclosure documents.

- (a) It is an unfair or deceptive act or practice in violation of Section 5 of the FTC Act for any franchisor to fail to include the information and follow the instructions for preparing disclosure documents set forth in [subpart C](/cfr/16/subpartC.md) (basic disclosure requirements) and [subpart D](/cfr/16/subpartD.md) (updating requirements) of [part 436](/cfr/16/part436.md). The Commission will enforce this provision according to the standards of liability under Sections [5](/cfr/16/5.md), [13(b)](/cfr/16/13.md?p=b), and [19](/cfr/16/19.md) of the FTC Act.
- (b) Disclose all required information clearly, legibly, and concisely in a single document using plain English. The disclosures must be in a form that permits each prospective franchisee to store, download, print, or otherwise maintain the document for future reference.
- (c) **Respond fully to each disclosure Item.** If a disclosure Item is not applicable, respond negatively, including a reference to the type of information required to be disclosed by the Item. Precede each disclosure Item with the appropriate heading.
- (d) Do not include any materials or information other than those required or permitted by [part 436](/cfr/16/part436.md) or by state law not preempted by [part 436](/cfr/16/part436.md). For the sole purpose of enhancing the prospective franchisee's ability to maneuver through an electronic version of a disclosure document, the franchisor may include scroll bars, internal links, and search features. All other features (e.g., multimedia tools such as audio, video, animation, pop-up screens, or links to external information) are prohibited.
- (e) Franchisors may prepare multi-state disclosure documents by including non-preempted, state-specific information in the text of the disclosure document or in Exhibits attached to the disclosure document.
- (f) Subfranchisors shall disclose the required information about the franchisor, and, to the extent applicable, the same information concerning the subfranchisor.
- (g) Before furnishing a disclosure document, the franchisor shall advise the prospective franchisee of the formats in which the disclosure document is made available, any prerequisites for obtaining the disclosure document in a particular format, and any conditions necessary for reviewing the disclosure document in a particular format.
- (h) Franchisors shall retain, and make available to the Commission upon request, a sample copy of each materially different version of their disclosure documents for three years after the close of the fiscal year when it was last used.
- (i) For each completed franchise sale, franchisors shall retain a copy of the signed receipt for at least three years.

## Notes

### Authority

Authority: 15 U.S.C. 41-58.

### Source

Source: 72 FR 15544, Mar. 30, 2007, unless otherwise noted.