Despite what some in the industry say, it’s neither illegal nor uncommon for franchisors to negotiate franchise agreements with prospective franchise buyers.
Under ASC 606, franchisors will have to begin deferring recognition of some or all of the up-front franchise fee revenues they receive over the life of a franchise agreement.
Bringing franchise registrations into the 21st century, Washington may require franchisors to e-file registrations.
The Virginia State Corporation Commission is considering implementing a new exemption to its disclosure and registration law for large initial franchise investments in excess of $5 million.
Unlike most states, California’s registration and disclosure law does not stop applying when the franchise agreement is signed. An agreement between the parties to materially change (or amend) an existing franchise agreement is an event triggering special requirements in California.
Nevada’s new law AB 276 provides comfort to franchisors seeking to enforce covenants not to compete in the state.