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  Compliance with Disclosure Laws
  Misrepresentations & Omisions
  Earnings Claims
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  Developing a Compliance Program


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Philadelphia, PA - 215.545.5200

Cherry Hill, NJ - 856.665.5253

Brunswick, GA - 912.264.4211

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FRANCHISE DESK REFERENCE
TABLE OF CONTENTS

Updated as of April 1, 2004


In our experience, the vast majority of claims by franchisee's against their franchisor's include (i) improper pre-sale disclosure; and (ii) improper earnings claims. Given the recurring nature of these claims, we developed the Franchise Sales Desk Reference. Our clients have found the Franchise Sales Desk Reference very helpful in educating franchise sales personnel and avoiding litigation. We also offer franchise sales compliance seminars, onsite or locally and can create for you a franchise sales training program customized to your needs for your in-house sales staff, master franchisees or area developers with sales responsibilities.

Nothing contained in the Franchise Sales Desk Reference is to be considered as the rendering of legal advice for specific cases, and readers should seek advice from their own legal counsel. The Franchise Sales Desk Reference and any forms and agreements herein are intended for educational and informational purposes only.

Biography of Lane Fisher, Esquire

Biography of Jeffrey Zucker, Esquire

I. Compliance with Federal and State Disclosure Laws

A. The FTC Rule

B. Single Trademark License Exclusion

C. State Registration/Disclosure Laws

D. State Business Opportunity Laws

E. Registration of Franchise Salesmen and Brokers

F. Advertising

G. Enforcement and Penalties

H. Proposed Changes to the FTC Rule

I. Electronic Disclosures

II. Misrepresentations and Omissions

III. Earnings Claims

IV. Negotiated Changes

V. Compliance with State Relationship Laws

VI. Sell Only to Qualified Candidates

VII. Developing a Compliance Program



APPENDICES

APPENDIX A
Summary of Franchise Registration and Disclosure Laws and Franchise Relationship Laws with Broad Applicability

APPENDIX B
Franchise Sales Activity During the Renewal Process (chart)

APPENDIX C
Summary of Business Opportunity Laws

APPENDIX D
Advertising Chart

APPENDIX E
Franchisors Making Earnings Claims by Type

APPENDIX F
Compliance Certification

APPENDIX G
Lane Fisher's Published Earnings Claim Articles


F I S H E R Z U C K E R
Franchise Law / Business Lawyers

121 Avenue of the Arts, Suite 1200, Philadelphia, PA 19107
215.545.5200

402 Park Boulevard, Cherry Hill, NJ 08002
856.665.5253

777 Gloucester Street, Suite 411, Brunswick, GA 31520
912.264.4211

Copyright 2004 - Fisher and Zucker