Training Programs

Franchise Sales Desk Reference Training Manual.
Last year we prepared a comprehensive training manual for franchisor or sales personnel. In it we discuss regulatory compliance, including compliance with the FTC Rule and state statutes governing the sale of franchises. The Franchise Sales Desk Reference has become a valuable resource for many of the firm's clients.

Consider the timing and scope of the sales compliance training offered to your employees, and for that matter, any area developers who have resale rights and responsibilities. Ask yourself whether that training is adequate in light of our incredibly litigious society, and the fact that a vast majority of claims asserted by franchisees against franchisors include claims of (1) improper disclosure; and (2) improper earnings claims.

With respect to the latter, the most recognized franchisee litigators claim that, in the absence of an earnings claim, they can find some affirmative statement or admission that could arguably give rise to a claim, given that federal and state laws have created an incredibly expansive definition of conduct which could constitute an earnings claim. Moreover, most improper disclosure claims are predicated on a failure to give the franchisee an updated document reflecting material changes, updating earnings claim information where required, a failure to use the properly registered document in registration states, and failing to document the making of timely disclosures, the lack of any earnings claims and any negotiated changes.

Given the recurring nature of these claims, we began offering our franchisor clients franchise sales compliance seminars, onsite or locally. We use a proprietary comprehensive workbook known as the Franchise Sales Desk Reference, which includes modules on registration and disclosure, earnings claims, advertising, compliance certifications, negotiated changes, misrepresentation and omissions (the "Program"). We have also developed a optional pre-test designed to determine a persons level of knowledge going into the Program and a test at the conclusion of the Program to determine the proficiency level at the conclusion of the Program. Essentially, we can tailor a training program to your specific needs, based on your availability, in a manner which maximizes the number of participants from your organization who can attend. For example, if you do not use an earnings claim, we will consult with you with respect to specific measures of performance or an alternative means of casting your data, in an effort to cast your opportunity in the most favorable light. If you use an earnings claim, we can assist you in defining the information which must be included in the claim and the permissible uses of the claim.

At your request, we can also create a training program which you can offer in conjunction with your annual convention for your inside sales staff, your master franchisees or area developers with sales responsibilities.

Our clients have found the Franchise Sales Desk Reference very helpful in educating sales personnel and avoiding litigation. Based on the response of our existing clients, we have determined to offer the program to others on the same basis. We expect that the cost for the Program will vary depending on the length of the Program, the different categories of attendees and applicable travel and lodging expenses.