NAVIGATING COMPLIANCE WITH STATE AND FEDERAL FRANCHISE DISCLOSURE AND SALES LAWS

A franchise company cannot do business without the assistance of counsel knowledgeable in the exceedingly complex state and federal regulatory environment of franchise sales. Many years ago, the Federal Trade Commission adopted its franchise rule that requires an extensive disclosure before the sale of a franchise or business opportunity can be made. However, several states had already begun regulating the sale of franchises before the FTC acted. Over the years, many other states have also adopted statutes and regulations restricting the actions of franchisors. The result of this history is a patchwork of differing and sometimes contradictory rules and regulations, that control what franchisors can and cannot do.

Standard UFOCs Can Vary State to State
Although a single Uniform Franchise Offering Circular format can be used in all states, many states require customized addenda or changes to the standard format. Knowing how to comply with state regulations and register with state agencies where necessary, is a critical part of any franchise development program. This is one area of the law where it is simply necessary to engage counsel that is intimately familiar with the legal landscape of the industry. At the Franchise Law Source, we focus our practice on franchise company concerns that can free you up to focus on franchise sales.

The Right Documentation Creates The Right Environment for Success
We work with clients to draft franchise agreements and thorough and effective offering circulars. We work with clients to see that their development people and affiliated brokers are properly trained. We help clients to build development strategies that work while complying with the law and reducing the risk of litigation in the future.

Whether you are a new franchisor or a company that has been selling franchises without adequate guidance, we can help you design a development and sales program that will reduce legal risks and promote the development of your brand.

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