First, a Federal Trade Commission regulation, the franchise rule, regulates the initial interactions between a franchisee and a potential franchisee. The full text of the franchise rule and a compliance guide written by the FTC are available on the FTC`s website. Since a franchise agreement is supposed to reflect the uniqueness of each franchise offering and explain the dynamics of the proposed franchise relationship, copying the agreement from another franchise system is probably the biggest mistake a new franchisee can make. Subway is an example where a lot has been written about the oversaturation of the market and its negative effects on franchisees. The agreement indicates whether the franchisee benefits from a protected or exclusive area. The franchise agreement is long, detailed and is made available to potential franchisees as an exposure to the FDD well in advance of signing, to ensure they have time to verify the agreement and get advice from their lawyers and other advisors. . . .