Franchise Disclosure Issues
Whether you are selling a franchise or buying one, the Franchise Disclosure Document (FDD) is the necessary document by which all of the information required to be disclosed pursuant to the Federal Trade Commission’s recently revised Franchise Rule, Amended Franchise Rule 16 C.F.R. Part 436 (effective July 1, 2008) is set forth.
If you are a prospective franchisee, we will review the FDD and advise you as to the franchiser’s background, financial status, litigation history, the key provisions in the franchise documents and other important information disclosed in the FDD.
If you are a franchiser, (or want to become one) we can set up a franchising program for you (see “Setting Up A Franchise Program”, above), review or prepare your disclosure documents and agreements, register you as a seller of franchises in the states that require it (California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin. Michigan has a notice filing requirement; Oregon has a disclosure requirement but no filing requirement) and generally, provide you with the legal services necessary to commence or continue your franchise business.