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Franchise Sales: New Guidelines Prohibit the Use of Franchisee Questionnaires in the Sales Process

Franchisors can no longer use franchisee questionnaires during the franchise sales process, according to a new Statement of Policy effective January 1, 2023, issued by the North American Securities Administrators Association (“NASAA”), whose guidelines are followed in the 13 franchise registration states.

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Who Should Be Involved in Discovery Day?

According to Franchise Times, a franchise discovery is the industry’s version of a show-and-tell. Prospective franchisees are brought to the brand’s corporate office for a day of interactions and education as the franchisor works to prove that it is the best option for attendees to invest in.

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FTC Burgerim Action Offers A Cautionary Tale For Franchisors

The Federal Trade Commission (FTC) has recently signaled a new drive to bring federal enforcement action against franchisers who violate the franchise disclosure rules by engaging in misleading sales practices.

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New Law Establishes Procedures and Rules that Will Benefit Trademark Owners

Recently enacted amendments to the federal Lanham Act trademark statute (Trademark Modernization Act of 2020) which took effect last month, create new procedures and rules that will benefit trademark owners by:

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When Is A “Franchisee” Actually A Glorified “Employee”?

The battle to define the dividing line between two business models (franchisee versus employee) continues in the courts, state legislatures, and federal agencies, as employee activists continue to press the case that certain franchise relationships actually constitute an employment relationship.

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Project Group Issues New Guidelines About Selling Franchises During the Pandemic

Franchisors and state regulators have been struggling with the issue of how franchisors can continue to sell franchises in the midst of the coronavirus pandemic in a way that is not misleading, particularly if their franchise disclosure document (FDD) contains historical information from 2019 about franchisee financial performance which predates the pandemic?

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