What are the restrictions on advertising for a franchise?

In West Virginia, advertising for a franchise is generally subject to certain restrictions. Generally, franchisors are prohibited from making any false, misleading or deceptive statements in any advertising materials, including statements regarding profits, fees, capital requirements, or earnings claims. Franchisors are also required to include a specific warning statement and certain other legal disclosures in all franchise advertisements. Franchisors must also refrain from including any unsubstantiated statements related to earning potential, the cost of investments, or any other guarantees. Additionally, franchisors must avoid exaggerations that may lead to unrealistic expectations from potential franchisees. Furthermore, all advertisements for franchises must be approved in writing by the franchisee prior to being used. In addition, any franchise advertising must be conducted in accordance with state and federal consumer protection laws. This means that franchise advertisements must clearly explain the franchise opportunity, disclose any fees or other costs associated with the franchise, and provide a prominent contact number that potential franchisees can use to get more information. In West Virginia, all franchise materials, including advertising, must be registered and approved by the West Virginia Franchise Investment Board. Franchisors must also submit a Disclosure Document and Franchise Agreement that includes all relevant information before they can begin advertising their franchise in the state.

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What are the restrictions on advertising for a franchise?

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