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
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franchise disclosure document
Rhode Island amends franchise disclosure and advertising requirements
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…
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Franchisor did not violate disclosure law, 5th Circuit agrees
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…
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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…
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Restricting transfer restrictions: California law places new burdens on franchisors
You’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…
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ABA Franchise Forum Takeaway – Communicate with your State Examiner!

After eight years of filing initial, renewal and amendment franchise registrations with state regulators I am no longer shy…
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Making SBA loans safer for franchisees…by mandating FPR’s?
Each time franchisors update their franchise disclosure documents (“FDD”), they have a choice: whether or not to include financial performance representations (“FPR”). A new bill introduced by Representative Keith Ellison …
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The third party to your franchise agreement: Congress?
“It is the purpose of this Act to . . . govern franchise agreements . . . to the full extent consistent with the Constitution of the United States .
…
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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…
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Trends in State Comment Letters
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 topi
cs are disclaimers…
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