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Disclosure Requirements Franchises

Fox Rothschild LLP

SBA Revives Franchise Directory: Benefits for Franchisors and Franchisees

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The Small Business Administration (SBA) has revived its Franchise Directory, providing significant benefits for franchise systems and their franchisees seeking financing. The directory returned June 1, 2025, as part of the...more

DLA Piper

The SBA Franchise Directory is Back

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The US Small Business Administration (SBA) has reinstated its SBA Franchise Directory after a two-year hiatus. Widely hailed as a valuable resource by stakeholders, the SBA Franchise Directory is a list of franchisors...more

Lathrop GPM

California Federal Court Denies Franchise CEO’s Motion to Dismiss Franchise Disclosure Claims

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A federal court in California recently declined to dismiss a former franchisee’s suit against Nadia Gruzd, the CEO and COO of AllMed Search, a healthcare recruitment franchise system. Pasture Gate Holdings, Inc. v. Gruzd,...more

Polsinelli

2024 Recap of Franchise Developments and 2025 Trends to Watch

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There were a number of important and potentially impactful developments in 2024 that we predict will continuing developing and trending in 2025. Some of these topics are also discussed in other articles in this annual update....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

IR Global

Key Considerations for Franchise Businesses When Undertaking M&A

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Mergers and acquisitions (M&A) in the franchise industry are complex transactions that require careful planning, due diligence, and a keen understanding of both pre and post-deal considerations....more

Foley & Lardner LLP

New Requirements for Franchise Brokers in California

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On September 24, 2024, Governor Gavin Newsom signed Senate Bill 919 (“SB 919”), amending California’s Franchise Investment Law (“FIL”) to regulate franchise brokers and franchise sales organizations. The law will take effect...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

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

Foley & Lardner LLP

Arizona House Introduces Potential General Franchise Law

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The Arizona House of Representatives recently introduced a bill, HB 2404, designed to insulate in-state dealers from market competition that, if enacted, will create a general franchise relationship law in Arizona. Currently,...more

BakerHostetler

FTC Ratchets Up Focus on Franchise Issues

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Ian Fleming famously wrote, “Once is happenstance. Twice is coincidence. Three times is enemy action.” Although we aren’t quite talking enemy action here, we are seeing heightened Federal Trade Commission (FTC) interest in...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

Venable LLP

Biz Opps Stung, Once Again, by the Beehive State

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On March 23, Utah Governor Spencer Cox signed into law sweeping amendments to the state’s Business Opportunity Disclosure Act (BODA). The amendments expand the scope of the statute to cover a broad spectrum of business...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

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

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

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

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

COVID-19: State FDD Renewal Changes

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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

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