financial performance representations

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,

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.

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

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

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

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

GearsI 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