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In short, it is: 16 Code of Federal Regulation (CFR) Parts 436 and 437

More specifically, the Franchise Rule gives prospective purchasers of franchises the material information they need in order to weigh the risks and benefits of such an investment. The Rule, primarily enforced by the Federal Trade Commission ("FTC") at the federal level, requires franchisors to provide all potential franchisees with a disclosure document (commonly known as the "FDD") containing 23 specific items of information about the offered franchise, its officers, and other franchisees.
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If you’re considering buying your own franchise, you probably have tons of questions running around in your mind; questions that can make the difference in success, or failure, of reaching your business goals.

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