News & Analysis as of

Rescission Franchise Disclosure Document

Lewitt Hackman

Franchisee 101: The (Ice Cream) Cart Before the Rescission

Lewitt Hackman on

A federal court in Cleveland rejected a California franchisee’s claim that an Ohio-based ice cream franchisor violated the California Franchise Investment Law (CFIL). The claim failed because the franchisee could not show it...more

Lewitt Hackman

FRANCHISEE 101: Technical Disclosure Violations

Lewitt Hackman on

The consequences to an unwitting franchisor can be severe when it fails to provide disclosure documents required by franchise law. Most franchise laws provide for rescission of the franchise agreement, allowing the franchisee...more

Lewitt Hackman

FRANCHISEE 101: How Far Do Earnings Projections Go?

Lewitt Hackman on

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

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