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Franchisors Disclosure Requirements

Polsinelli

California Enacts New Franchise Broker Law

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On Sept. 24, 2024, California Gov. Gavin Newsom signed Senate Bill 919, the California Franchise Broker Law, into law. Officially titled the “Franchise Investment Law: Franchise Brokers,” the California Franchise Broker Law...more

Offit Kurman

Maryland Franchise Reform Act Introduced

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On January 31, 2025, Delegate Marc Korman of Montgomery County introduced Maryland House of Delegates Bill 992, entitled the Franchise Reform Act, which would make the first significant changes to the Maryland Franchise...more

K&L Gates LLP

New Franchising Code to Commence in April

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The Competition and Consumer (Industry Code–Franchising) Regulations 2024 (Cth) (the New Code Draft), which replaces the Competition and Consumer (Industry Codes—Franchising) Regulation 2014 (the Old Code), is now in force...more

Fox Rothschild LLP

FDD Update Season: Is it time to call your Franchise Litigator?

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January officially starts the “Franchise Disclosure Document (“FDD”) Update Season”. And for franchise lawyers that focus on representing franchisors in the development of FDDs and related tasks, it is arguably the most...more

Foley & Lardner LLP

Louisiana Based Franchisor and Its Employees Cannot Avoid Personal Jurisdiction in Washington State

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Washington-state based franchisees Greg and Gabriela Skistimas brought suit against Hotworx Franchising LLC in the U.S. District Court for the Western District of Washington alleging misleading and unfair practices related to...more

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

K&L Gates LLP

Doing Business in Australia

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Australia welcomes new business and foreign investment by providing a strong economy, a stable political environment and a skilled and talented workforce. Our comprehensive guide to Doing Business in Australia has been...more

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

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

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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

Lewitt Hackman

FRANCHISOR 101: COVID-19 vs. Item 19

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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

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

Troutman Pepper Locke

ABCs of Franchising: Who Is a Franchisor?

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A business venture or operation that is determined to be a franchisor under the Federal Trade Commission’s Franchise Rule must comply with specific, and sometimes burdensome, requirements. ...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

Blake, Cassels & Graydon LLP

Let’s Eat: New Calorie Disclosure Requirements Coming to an Ontario Restaurant Near You

Big changes are coming to Ontario’s restaurant landscape. As of January 1, 2017, the Healthy Menu Choices Act (Act) will require food service chains with 20 or more locations in Ontario to disclose calorie information for...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

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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

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