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
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
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
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
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
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
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
The Federal Trade Commission (FTC) seeks public comment regarding its Trade Regulation Rule entitled, “Disclosure Requirements and Prohibitions Concerning Franchising” (the “Rule”)....more
If you’re considering purchasing a franchise, you’re probably overwhelmed by the size of the Franchise Disclosure Document (or, as it’s colloquially called, the “FDD”) and firmly believe that the franchisor’s lawyer gets paid...more