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