franchise disclosure document

The Federal Trade Commission (“FTC”) has requested public comments on its Trade Regulation Rule entitled “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”). The Rule makes it an unfair or deceptive act or practice for franchisors to fail to give prospective franchisees a Franchise Disclosure Document, which is required to provide certain specific information about

The North American Securities Administrators Association, Inc. (“NASAA”) is proposing to revise the instructions in the NASAA Franchise Registration and Disclosure Guidelines (the “Guidelines”) that outline policies and procedures regarding the preparation of a franchise disclosure document (“FDD”). Specifically, NASAA has set forth a proposal for public comment that replaces the “State Cover Page”  to

International franchisors inbound into the U.S. face a complex set of business decisions and legal regulations.  Even seemingly simple tasks–like properly executing a franchise registration application–can become a time-consuming and expensive endeavor (especially where the franchisor does not have an authorized signatory in the U.S.).  Knowing how and when to request waivers can save time

If your brand standards require franchisees to upgrade and improve their locations, a recent federal case demonstrates how thoughtful disclaimers and disclosures can shut down a franchisee lawsuit in its early stages. 

In Devayatan, LLC v. Travelodge Hotels, Inc., a franchisor terminated a franchise agreement due to the franchisee’s alleged failure to improve and

Franchisors offering and selling franchises in Rhode Island should take note of recent amendments to Rhode Island’s Franchise Investment Act:

Disclosure Requirements

Franchisors must now provide prospects with an FDD at least 14 calendar days before the execution of an agreement or the payment of any consideration related to the franchise.  “Calendar days” include all 

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.,

41235506_sYou’ve developed the concept.  You’ve protected the IP.  You’ve invested in the many upfront costs of franchising.  And to protect all your hard work, you conduct due diligence to find the best franchisees.

And if that franchisee wants to sell the franchise to a stranger, you should have almost unlimited veto power, right?  Not so