Description:
Understand how the FTC Franchise Disclosure Rules work to avoid franchisee claims and speed up the registration process.
Business owners seeking expansion need to choose franchising rather than limited partnerships, or bank financing for building their reach and brand. Franchising does involve additional regulatory hurdles but has been the only choice for the largest companies in the world to expand their markets using franchisee investment of time, money and capital.
This topic will help you identify when your client's business is right for franchising and required to comply with the registration and disclosure protocols required by the Federal Trade Commission Rules and state regulations. If your clients' companies are already within the regulatory regime, this material will share best practices in drafting, and gaining approvals by regulators. Even if your clients are not franchising yet, understanding how the franchise rules work is essential to properly advising your clients and helping them grow their brand.
Learning Objectives
- You will be able to describe what triggers the disclosure rules.
- You will be able to identify whether the business is subject to regulation and disclosure under the FTC and other state regulations.
- You will be able to recognize how to avoid the pitfalls that can trigger litigation and make your registration and disclosure practices more efficient.
- You will be able to review how to draft an effective franchise disclosure statement and use best practices informing franchisees how much they can make consistent with the FTC Rule.
Areas Covered in the Session:
Overview
- FTC and State Laws
- Development and History
What Triggers the Disclosure Rules
Typical Disclosure Questionnaire
Cutting Edge Drafting
- Financial Performance Representations
- Multi-Unit Issues
Best Practices With the Regulators
- Making Filing and Renewals Easier
- Current Industry Commentary
Credit Information (Sponsored by Lorman Education Services):
- CLE
- CPE
- NALA
- NASBA
Only registered attendee will receive continuing education credit.
Faculty:
Eleanor Vaida Gerhards, Fox Rothschild LLP
- Partner in the Pennsylvania office of Fox Rothschild LLP
- Practice focuses on commercial transactions and compliance matters representing primarily franchisors, area developers and master franchisees
- IFA Certified Franchise Executive and Member of ABA Forum on Franchising Program Committee
- Recently spoke on insurance issues facing franchise systems at ABA Annual Franchise Meeting in Miami, Florida
- Wrote a chapter in ABA’s Book on Franchise Exemptions and articles published in the ABA Franchise Lawyer newsletter, Franchise Law Journal, PAFI Press and Law360
- J.D. degree, magna cum laude, Duquesne University; B.A. degree, cum laude, Bloomsburg University of Pennsylvania
- Can be contacted at egerhards@foxrothschild.com
Craig R. Tractenberg, Fox Rothschild LLP
- Partner in the New York and Philadelphia offices of Fox Rothschild LLP
- Practice emphasizes all franchise development and restructuring activities and building franchise companies
- Monthly columnist to a national legal newspaper on franchise topics
- Adjunct law professor of franchise law at Temple University School of Law, (his alma mater)
- Author of several chapters of books on franchising and a frequent lecturer on franchise topics
- J.D. degree, Temple University James E. Beasley School of Law; B.A. degree, cum laude, La Salle University
- Can be contacted at ctractenberg@foxrothschild.com
(Not available outside the US)