Today, the Federal Trade Commission (the “Commission”) announced an amendment to its “Disclosure Requirements and Prohibitions Concerning Franchising” (16 C.F.R. Part 436) (the “Franchise Rule”) revising the monetary limits for three of the listed exemptions.
Do You Have this Unfair and Illegal Provision in Your Franchise Agreement?
Last night I reviewed a franchise agreement and found a surprising, and illegal, provision buried deep in the contract. If ever there was a compelling case for being careful when you are choosing legal counsel, I just found the provision that makes it.
Are Minimum Wage Laws that Discriminate Against Franchises “Industry-Specific” for the Purposes of Item 1?
Franchisees and franchisors continue to fight new minimum wage laws by U.S. cities that discriminate unfairly against small business owners who are affiliated with franchise systems. Are these types of laws “industry specific” within the meaning of Item 1 of the Franchise Disclosure Document?
FTC Issues Guidance to Franchisors Regarding Disclosure of Franchise Territories
The Federal Trade Commission recently issued new guidance that will affect how franchisors disclose whether they grant exclusive territories to franchisees.
FTC Announces Revised Monetary Exemptions Under The Franchise Rule
The Federal Trade Commission (the “Commission”) recently announced an amendment to its “Disclosure Requirements and Prohibitions Concerning Franchising” (16 C.F.R. Part 436) (the “Franchise Rule”) revising the monetary limits for three of the listed exemptions.
Surprise! You Just Starred In Our Movie
In a $3 million lawsuit, actor Jesse Eisenberg (star of The Social Network) claims that he was exploited by the producers of the direct-to-DVD movie, Camp Hell, when they overplayed his small role in the film by featuring his likeness on the DVD cover art. Franchising laws help to prevent this type of overstatement or puffery by requiring disclosure of important information to potential franchisees.