Barber Power Law Group Franchise Attorneys
Representing Franchisors, Franchisees + Entrepreneurs

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Friday Franchise Minute

Recently we have been approached by several franchisors with non-compliant and inconsistent franchise disclosure documents.  I am not saying the FDDs are bad (in fact they are good brands and have mutually beneficial terms), but they are missing key elements required by the Federal Trade Commission franchise rule such as incomplete FTC and State cover pages, incorrect information about trademarks, and an overall disconnect between the FDD Items and the Franchise Agreement. These mistakes not only open a franchisor to liability, but also make them look foolish to a potential franchisee.

You should regularly review your FDD with a fine-toothed comb to, at a minimum, make sure (1) you understand what it says and (2) that the terms match up between the Items and Franchise Agreement.

Have a great Friday and a fantastic weekend!