Last June we blogged about a lawsuit that ended favorably for a franchisor. In Braatz, LLC v. Red Mango FC, LLC, the trial court determined that a franchisor did not violate Wisconsin’s “14-day Rule”, which requires franchisors to provide an “offering circular” (aka FDD) to prospects 14 days before selling a franchise. 3:14-CV-4516-G (N.D.
Are You Ready for State Franchise Registration and Renewal Season?
Many franchisors’ fiscal year ended on December 31st. The FTC gives a franchisor 120 days to update its franchise disclosure document (FDD) but some state deadlines many come much sooner. Franchisors should already be gathering the information needed to update their FDD and file state renewal applications (if applicable). Below are some quick tips franchisors
Can You Put Information from FPRs in Your Advertising? Very Carefully.
I continue with my seventh and final installment on Observations from the IFA Convention on the Ins and Outs of Financial Performance Representations (“FPRs”). Again, my thanks to Max Schott of Gray Plant Mooty for co-authoring this summary with me. This concerns some advice on advertisements and FPRs and Max and my last and final
Preparing FPRs: Is Variety the Spice of Life?
We continue with the third installment on Observations from the IFA Convention on the Ins and Outs of Financial Performance Representations (“FPRs”). Again, our thanks to Max Schott of Gray Plant Mooty for co-authoring this summary with me. This time, we summarize a few pointers
Are Your Financial Performance Representations Up To Snuff?
During February’s International Franchise Association’s Annual Convention in Las Vegas (see www.franchise.org for more information on the IFA’s events), Max Schott of Gray Plant Mooty and I were asked to co-facilitate two round tables on Financial Performance Representations (FPRs for short), which may be contained
Looking to Grow a Marijuana Franchise?
Doggy daycare resorts, bed bug chasers, hypnosis centers- what hasn’t been franchised? Many attorneys, myself included, represent franchisors in a very wide variety of industries all over the United States. What happens when you get that call from a client saying “I want to franchise my marijuana business!”
The marijuana franchise trend has already started
Start the FTC and State Annual Update and Renewal Process Now!
Many franchisors’ fiscal year ended on December 31st. The FTC gives a franchisor 120 days to update its franchise disclosure document (FDD) but you should be gathering the information needed to update your FDD and file your state
renewals (if applicable) NOW! Below are some quick tips franchisors should follow to ensure they meet
Are Your Exculpatory Clauses Enforceable?
An interesting decision has recently come down from the Court of Appeals of the State of Wisconsin. In C&M Hardware v. True Value Company (May 2013), the appeals court reversed the lower court’s decision and ruled that an exculpatory clause in the contract between True Value and its franchisee, C&M, was unenforceable as against
FTC: Territory Not Exclusive if Franchisor Reserves Non-Traditional Venues
A new "FAQ 37" recently released by the Federal Trade Commission (FTC) staff makes it clear that a franchise system which reserves the right to non-traditional venues must disclose that it does not provide an exclusive territory.
The question asks whether a franchisor may state in Item 12 of its FDD that it grants an "exclusive territory" if
FTC April 30th Updating Deadline Approaching for Calendar Year Franchisors
The FTC requires a franchisor to update its franchise disclosure document (FDD) within 120 days of the close of its fiscal year. The April 30th deadline is fast approaching for franchisors who completed their fiscal year on December 31st. At the end of the 120 day period, the franchisor may only offer and sell using the updated FDD. In addition, many states franchise renewal laws also