News & Analysis as of

Disclosure Requirements Franchise Disclosure Document

Davis Wright Tremaine LLP

Warns Franchisors Against Unfair Practices and Spotlights Risks in Franchising

The FTC administers the federal franchise sales law, which requires all franchisors engaged in franchise sales in the United States to deliver a franchise disclosure document (FDD) to their prospective franchise buyers unless...more

Seyfarth Shaw LLP

Ten Tips for Franchisors This FDD Renewal Season

Seyfarth Shaw LLP on

Federal law requires franchisors to update their franchise disclosure documents (“FDD”) within 120 days after their fiscal year end (“FYE”). State registrations must also be renewed annually. Here are ten best practices for...more

Davis Wright Tremaine LLP

Making a Financial Performance Representation (Item 19 Disclosure) in 2021

Why Make an FPR? According to a recent study, franchisors that make a Financial Performance Representation (FPR) sell more franchises than those that choose not to....more

Foley & Lardner LLP

FTC Considering Changes to Franchise Rule

Foley & Lardner LLP on

For the first time in over a decade, the Federal Trade Commission is considering changes to its Franchise Rule. The Rule represents an effort by the Commission to prevent unfair and deceptive practices by franchisors against...more

Lewitt Hackman

FRANCHISOR 101: COVID-19 vs. Item 19

Lewitt Hackman on

Item 19 of the Franchise Disclosure Document (FDD) can provide information on how a prospective franchisee may perform financially. Historical financial performance representations (FPRs) may be made if the franchisor has a...more

Lathrop GPM

Four Key Takeaways from the NASAA & Washington Commentaries on COVID-19 Disclosures

Lathrop GPM on

On June 10, 2020, the North American Securities Administrators Association (NASAA) penned new commentary titled, “Disclosing Financial Performance Representations in the Time of COVID-19” (Commentary). Shortly thereafter,...more

Lewitt Hackman

COVID-19: State FDD Renewal Changes

Lewitt Hackman on

In light of the COVID-19 pandemic, several states that require annual Franchise Disclosure Document (FDD) renewals made recent changes to their filing deadlines, fees and/or submission requirements, as set forth below....more

Lewitt Hackman

Full Disclosure: Periodic Review of FTC Franchise Rule

Lewitt Hackman on

The Federal Trade Commission (FTC) seeks public comment regarding its Trade Regulation Rule entitled, “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”)....more

Lewitt Hackman

FRANCHISEE 101: Rocky Road to FDD Disclosure

Lewitt Hackman on

An ice cream parlor franchisor in Ohio, Handel Enterprises, Inc., must defend claims that it violated the California Franchise Investment Law (CFIL) for failing to disclose its amended franchise disclosure document (FDD) to a...more

Lewitt Hackman

FRANCHISOR 101: Catch-all Disclaimers No Substitute for Untrained Salespeople

Lewitt Hackman on

How strong are "non-reliance disclaimers" or "integration" or "merger" provisions in franchise agreements at protecting a franchisor when it really matters? Only so much, a New York court recently decided....more

Jaburg Wilk

Thinking about Buying a Franchise?

Jaburg Wilk on

If you’re considering purchasing a franchise, you’re probably overwhelmed by the size of the Franchise Disclosure Document (or, as it’s colloquially called, the “FDD”) and firmly believe that the franchisor’s lawyer gets paid...more

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