News & Analysis as of

Misrepresentation Franchise Disclosure Document

Fox Rothschild LLP

NASAA Adopts New Franchise Questionnaire Policy

Fox Rothschild LLP on

As expected, the North American Securities Administrators Association (NASAA) announced last week that it voted to adopt a “Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements” (NASAA...more

Lewitt Hackman

Franchisor 101: Can’t Break the Broker

Lewitt Hackman on

A Minnesota federal court ruled in favor of a franchise broker on summary judgment. The court dismissed misrepresentation claims brought by a military veteran who alleged unlawful inducement to invest in a failed kickboxing...more

Lewitt Hackman

Franchisor 101: Hot Doggin' Franchisee Sales Pitches

Lewitt Hackman on

Hot dog franchisor, Charlie Graingers, was unable to obtain dismissal of a federal lawsuit brought by franchisees alleging fraud, misrepresentation and breach of fiduciary duty....more

Lewitt Hackman

FRANCHISEE 101: How Far Do Earnings Projections Go?

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A franchisor is allowed to make "financial performance representations" in its disclosure documents. These figures may project how much money a franchisee is likely to make and can play a critical part in the franchisor's...more

Lewitt Hackman

FRANCHISEE 101: Relying on Franchisor’s Profit Projections

Lewitt Hackman on

Most experienced franchisors know better than to make claims about profits franchisees can expect when those claims do not match the information in the franchisor's Franchise Disclosure Document. However, if a franchisor or...more

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