Financial Performance Representation

In Part 1 of this series, we discussed the recent actions taken by Congress regarding the PPP program as well as the efforts by the Fed. In today’s post, we dig deeper into the challenge by state Attorneys General to the Department of Labor’s final joint employment rule moved forward in the Southern District of

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.

A federal court in Minnesota recently dismissed a franchisee’s misrepresentation claims thanks to the franchisor’s carefully drafted franchise agreement.

Franchisee Moxie Venture L.L.C. (“Moxie”) brought suit against franchisor The UPS Store, Inc. (“TUPSS”) claiming violations of the Minnesota Franchise Act (“MFA”) and other common law claims.  Moxie Venture L.L.C. v. The UPS Store, Inc.,

Copyright: stuartphoto / 123RF Stock Photo
Copyright: stuartphoto / 123RF Stock Photo

Earlier this month we posted about the recently released proposed commentary on Item 19 Financial Performance Representations.   This is a reminder to everyone that the drafter, NASAA’s Franchise and Business Opportunity Project Group, are accepting comments through November 2, 2015. Dale Cantone of the

Registration and renewal season is here for many franchisors, and state comment letters offer a glimpse of the hot-button issues in franchise disclosure. Among trending disclosure topi9732125_lcs are disclaimers protecting franchisors, Item 19 financial performance representations, and discretionary fees and services.

Given the volumes of disclosure that franchisors must make, disclosure documents often contain

CompassIn a surprising decision from a usually franchise-friendly jurisdiction, the Georgia Court of Appeals recently held that a Georgia statute provides a method for franchisees to bring private lawsuits for violations of the FTC Rule. See Legacy Academy, Inc. v. Mamilove, LLC, 761 S.E.2d 880 (Ga. Ct. App. 2014). As the franchise world is