Are there disclosure requirements prior to executing the Franchise Agreement?

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There are no requirements or special rules about information disclosure in the negotiation stage of the Franchise Contract. Therefore, there is no obligation for the Franchisee to reveal information in the commercial offer.

However, under the general regulation of contracts the offer must have the essential elements of the business. Under this understanding, the information disclosed by the Franchisee must not be deceitful and should be as complete as possible to give the Franchisee the possibility of a fair evaluation of the responsibilities and rights that it will have under the Franchise’s development.

All these is to avoid a mistake that later can provide legal arguments of vices of consent and therefore the nullity of the contract.