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Use the covered people’s five-year histories
The item covers relevant directors, principal officers and people with management responsibility for franchise sales or operations. It identifies their principal positions and employers over the last five years. Collect the real history for the covered people, rather than replacing it with a short brand story.
Branch experience and franchise support can differ
A successful branch director may never have trained independent owners or supported several regions. Their branch history belongs in the required biography; it does not by itself establish available time or experience for the support being sold.
Use the promised training and continuing services in Item 11 to judge that separate staffing question. Do not describe hoped-for experience as an existing qualification.
Scope
- This explains the selected federal disclosure item. State and territorial requirements and the terms of the particular offer remain separate.
Next step
Check the covered people and their five-year positions and employers; compare the support team with the actual services being offered.
Sources & review notes
Federal Franchise Rule
FTC overview · Compliance Guide · Guide PDF · Current regulation
Federal Trade Commission
Passage, dates and research notes
primary · Item 2: Business experience
principal positions and employers during the past five years
Current substantive item read in full from current eCFR. This guide explains selected management implications; it is not a substitute for all prescribed disclosure text.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.6
Respond fully to each disclosure Item.
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Detailed rule records (1)
Item 2 gives the relevant directors, principal officers and people with management responsibility for franchise sales or operations, including their principal positions and employers during the last five years. Delivery expertise and franchise-support experience are separate questions.
16 CFR §436.5(b): FDD Item 2Related case records
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