News & Analysis as of

Disclosure Requirements Franchisee

Lathrop GPM

Tennessee Federal Court Compels Arbitration in Fraudulent Inducement Dispute

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A federal court in Tennessee recently compelled arbitration for parties in a franchise disclosure dispute. B&P Glass Mirror, LLC v. Clozetivity Franchising, LLC, 2023 WL 3484205 (M.D. Tenn. May 16, 2023). Plaintiff B&P...more

Seyfarth Shaw LLP

Ten Tips for Franchisors This FDD Renewal Season

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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

K&L Gates LLP

Franchisors Need to Register by 14 November 2022

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On or before 14 November 2022, franchisors operating a franchise system in Australia will need to create a franchise profile and publish key disclosure information about their franchise on the new Franchise Disclosure...more

Lewitt Hackman

Franchisor 101: Preemption Preempted

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Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country. A putative class of 7-Eleven franchisees...more

Lippes Mathias LLP

Dealing With Disclosure Requirements for Franchises and Business Opportunities

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Everyone is familiar with franchises – if you have been to a McDonalds® or a Starbucks®, chances are the location is operated by a franchisee. Less familiar, at least in terms of national name recognition, are ventures...more

Foley & Lardner LLP

FTC Considering Changes to Franchise Rule

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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

New Franchise Regulations on the Horizon?

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On September 16, 2020, Rohit Chopra, one of the five commissioners on the Federal Trade Commission (FTC), declared on Twitter that “[franchise] regulators must stop unfair, deceptive, and discriminatory practices that target...more

K&L Gates LLP

Franchising Update | Parliamentary Joint Committee on Corporations and Financial Services: Main Changes from the Australian...

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FRANCHISING CODE - On Thursday 20 August 2020, the Australian Federal Government released a report which sets out intended changes to the Franchising Code (the Code). ...more

Dickinson Wright

Amendments to the Arthur Wishart Act, 2000

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On July 16, 2020, the government of Ontario announced that amendments to the Arthur Wishart Act (Franchise Disclosure), 2020 (the “Act”) and to its General Regulation (the “Regulation”) will be brought into force on September...more

Lathrop GPM

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

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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

Full Disclosure: Periodic Review of FTC Franchise Rule

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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

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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

Blake, Cassels & Graydon LLP

Now in Effect: British Columbia’s Franchises Act

On February 1, 2017, British Columbia’s Franchises Act (B.C. Act) and Franchises Regulation (Regulation) came into force. Although the B.C. Act follows other provincial franchise legislation closely, including with respect to...more

Dickinson Wright

BC Finalizes Franchise Laws

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British Columbia has released the anticipated regulations to the previously enacted Franchises Act (BC). The Franchises Act (BC) will come into force on February 1, 2017, at which time British Columbia will be the sixth...more

Dickinson Wright

Electronic Disclosure: The Canadian Franchise Association Proposes Changes to the Arthur Wishart Act

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The Canadian Franchise Association (CFA) has proposed changes to modernize Ontario’s Arthur Wishart Act (Franchise Disclosure), 2000 (Act) by allowing franchise disclosure documents (FDD) to be delivered electronically. Such...more

Lewitt Hackman

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

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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

Holland & Knight LLP

Food and Beverage Law Update: October 2015

Holland & Knight LLP on

Labor and Employment - Plaintiff Wage and Hour Lawsuits Continue to Climb - Wage and hour litigation has become what some call the new "workplace revolution." Data from the Federal Judicial Center indicates that...more

Baker Donelson

Business Succession Planning: The Time is Now

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Family-controlled businesses comprise between 80-90 percent of all business enterprises in North America. And while it is estimated that nearly 40 percent of family businesses are passed successfully to a second generation,...more

Lewitt Hackman

FRANCHISOR 101: Disclosure Violations & Running the Risks of Rescission

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Despite a district court's recent decision in Braatz, LLC v. Red Mango FC, LLC, franchisors are well advised to comply with applicable disclosure requirements to a "T" to ensure new franchisees will not have an ongoing right...more

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