On Wednesday of this week, the Senate Committee on Small Business and Entrepreneurship sponsored a public hearing on the state of the franchising industry. The hearing, entitled: Small Business Franchising: An Overview of the Industry, SBA’s Role and Legislative Proposals, featured a number of witnesses, primary among whom was Senator Catherine Cortez Masto (D-NV), the…
Read More »With a renewed focus on bad actors within the franchise industry, the US Federal Trade Commission (FTC) took a significant step this week when the Department of Justice (DOJ) filed suit against franchisor Burgerim alleging in a four-count lawsuit that the company violated Section 5 of the FTC with false and misleading representations to potential…
Read More »Inequity in the ‘franchise partnership’ between franchisors and the franchisee community has finally resonated with some in power – in particular, Senator Catherine Cortez Masto (D-NV). In an 87-page report entitled: “Strategies to Improve the Franchise Model: Preventing Unfair and Deceptive Franchise Practices” and released by her office this week, the first-term Senator from Nevada…
Read More »Easy to miss in the tsunami of the coronavirus pandemic, a number of changes were recently made – effective two weeks ago on July 1 – to the Indiana Franchise Law. Of greatest import, franchisors registered in Indiana are now required to file an amended disclosure document within 30 days of any “material change” as…
Read More »The Federal Trade Commission (FTC) issued a notice this week regarding changes to 16 CFR Part 436, Disclosure Requirements and Prohibition Concerning Franchising, more commonly referred to as the Franchise Rule. The notice advises that the FTC is seeking comment from the public on whether to make any changes to the Franchise Rule while the…
Read More »The Coalition of Franchisee Associations, of which DDIFO is a founding member, commended the North American Securities Administrators Association (NSAAA) for the seven new sections it added to Item 19 of the Franchise Disclosure Document to further help guide regulators and protect investors from false or misleading Financial Performance Recommendations. The changes should help small…
Read More »There’s only a few days left to register for the CFA Webinar entitled: “Franchisors New Financial Performance Requirements: What You Need to Know” being held next Wednesday, July 26 from 11AM – 12 Noon ET. On May 8, 2017, North American Securities Administrators Association (NASAA) voted to adopt a Financial Performance Representation Commentary for franchises.…
Read More »A few months back, the North American Securities Administration (NASAA) added some requirements on the part of franchisors making certain Item 19 Financial Performance Representations. As a result, effective May 8th of this year, franchisors are required to made those representations more transparent and less susceptible to manipulation. To keep you aware of these important…
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