At the same time, however, you need to be aware of the risks you face before you can start analyzing them and deciding what to do about them. By providing specific examples from your research, explain the specific actions required of a new entrepreneur when starting a new business. The Franchise Rule provides potential franchise buyers with the material information they need to evaluate the risks and rewards of such an investment. The Rule requires franchisors to provide all prospective franchisees with a disclosure document containing 23 specific information about the franchise being offered, its officers and other franchisees. The amended rule affects the offering and sale of franchises. As per the Original Rule, a business arrangement is a “franchise” if it meets three defining elements. Specifically, the franchisor must: (1) promise to provide a trademark or other trade mark; (2) promise to exercise significant control over or provide significant assistance in managing the business; and (3) require a minimum payment of at least $500 during the first six months of operation (Wells, G.C. & Wieczorek, D. E.