General Nutrition Center has performed poorly in disclosing vital information that could have helped the franchisee make a better decision in investing. The Securities Exchange Act of 1934 requires companies to disclose any information about their finances to potential investors. The law prohibits any deceptive activities and fraudulent activities against potential investors (Seaquist, 2012). General Nutrition Center has been fined in the pass for not disclosing vital information to investors about their financial stability to all investors, including franchisees (Mendenhall, 2000).
It is vital for any company to be ethical when they are seeking investors. It is very important to disclose all documents that will help an investor make the right decision when potentially investing in a company. This is especially true when a person wants to buy a franchise.
No person should invest in a company without the proper