Peaberry: Is the FDD Enough?
For just over three decades, franchisors have been subject to regulations governing the information they must disclose to prospective franchisees. Franchisors' disclosures have been guided by the Federal Trade Commission's Franchise Rule and the North American Securities Administrators Association's Uniform Franchise Offering Circular Guidelines.
Writing in The Franchise Lawyer about the implications of a recent Colorado Appeals Court decision, Jeffrey Brimer and Sarah Mastalir Kellner consider whether a franchisor whose Franchise Disclosure Document (FDD) complies with the Franchise Disclosure Regulations can still be subject to liability for failure to disclose additional information.The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.