My colleagues and I have posted in the past about the proposed commentary on Item 19 Financial Performance Representations (“FPR Commentary”) drafted by the North American Securities Administrators Association, Inc. (“NASAA”). The FPR Commentary is intended to provide practitioners with clarification about how franchisors should make an FPR in Item 19 of the Franchise Disclosure Document and will answer frequently asked questions about how franchisors can make a financial performance representation (also known as an earnings claim) under federal and state franchise disclosure guidelines.
The NASAA is once again seeking public comments on a revised proposal for the FPR Commentary. This is a second request for public comments following the feedback received on the original proposed FPR Commentary. The original proposed FPR Commentary was released for public comment in October of 2015.
A copy of the proposed FPR Commentary with instructions on how to provide your comments can be found here. Comments on this revised proposed FPR Commentary are due on or before October 13, 2016 and the NASAA reminds everyone after the comment period has closed, NASAA will post to its website the comments it receives as submitted by the authors. Parties should therefore only submit information that they wish to make publicly available.