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The Amended FTC Franchise Rule

Autor: Josan García Fecha: Coincidencia: 96,86%

... The Amended Rule also requires the franchisor to disclose information about the franchise agreement and the franchise relationship, including obligations of both the franchisee and the franchisor, fees paid, territory restrictions, financing and trademarks licensed. Before delivering the FDD, the franchisor must simply advise a prospect of available disclosure formats, and any requirements for obtaining and reviewing disclosure in a particular format. Most importantly, the Amended Rule requires a franchisor to disclose annually in Item 3 all franchisor-initiated litigation involving the franchise relationship filed during the previous fiscal year. While franchisor-initiated litigation must be “material,” the FTC intends to view materiality from the reasonable prospective franchisee’s vantage point. The disclosure of franchisor-initiated litigation is meant to cover a snapshot in time, and is not required to be updated. 4. ...

DISCLOSURE , EVALUATING , FRANCHISOR

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