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Disclosure and Registration

Before franchisors may offer any franchises, they must comply with federal and state law. The Federal Trade Commission (“FTC”) requires that franchisors make certain pre-sale disclosures to potential franchisees in form of a Franchise Disclosure Document (“FDD”). The FDD must be presented to potential franchisees at least fourteen (14) days before the franchise agreement is signed. Other than the disclosure items set out by the FTC, the FDD must also contain all franchise agreements and related documents and audited financial statements of the franchisor. Our firm prepares complete FDDs for your franchise, as well as annual updated thereof.

In addition, certain states have enacted supplemental franchise laws and/or require presale registration and approval of FDDs by the relevant state authorities. Our attorneys are aware of the different requirements and frequently assist franchisors with state registrations. If you are a franchisor seeking to expand your franchise to other states, please contact us.

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