As if the global pandemic was not enough to cause franchisors and their attorneys heartburn, the North American Securities Administrators Association released a commentary titled “Disclosing Financial Performance Representations in the Time of COVID-19” to add another spice to the stomach turning situation. While it provides franchisors with recommendations on evaluating existing FPRs,
FDD Item 19 Financial Performance Representations in the Age of COVID-19
With most non-essential businesses closed across the country, it is easy to forget we are two weeks away from the April 30th Franchise Disclosure Document (FDD) update deadline for franchisors with a calendar fiscal year end. Some franchise systems are delaying the preparation and issuance of an updated 2020 FDD and corresponding state renewal registrations.
Last Chance to Provide Your Comments on the NASAA FPR Commentary!
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
Drafting Matters: Franchise agreement fells misrepresentation claim
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.,
NASAA Releases Commentary on FDD Financial Performance Reps for Comment
Last week the NASAA Franchise and Business Opportunity Project Group released for public comment a Notice of Request for Comments Regarding A Proposed Franchise Commentary on Financial Performance Representations. The FPR Commentary includes proposed answers to frequently asked questions about how franchisors can make
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
When Would a Franchisor Ever Want to Use a Supplemental FPR?
I continue with my sixth 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 whether and how a franchisor can make a “supplemental FPR”.
Supplemental FPRs: What are they
Does One State’s Required Change in a FPR Apply Nationally by Default? Probably.
Today, I continue with the fifth 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. The following FAQ was released
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
How Should a New Franchisor Address Financial Performance Representations?
I continue with the second 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. We focus this time on new