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Log In / Register | Nov 22, 2017

Franchisees Want Private Right of Action to Pursue Franchisor Lies in Disclosure Documents

WASHINGTON, D.C.— The Franchise Rule is the guideline that franchisors follow in disclosing the risks and benefits of a franchise investment. It is a rule that the Federal Trade Commission says it strives to update every ten years.

State Regulators to Tighten Franchise Earnings Disclosure

Attorneys gather for IFA Legal Symposium 2016. Regulators speak on their proposed new guidelines
Attendees of the IFA's Legal Symposium 2016 (photo: Sniegowski)

WASHINGTON, D.C. – For years franchisees and their advocates have wanted standard financial terms to be used in disclosures to franchise buyers rather than the present ocean of obscure terminology. They have also wanted clearer franchise earnings information. State regulators are now joining in.

Franchisees to Regulators: Franchisors Must Disclose Franchise-Level Profits

Alexander Hamilton
Where's the money? Alexander Hamilton on $10 bill. (Photo: Sniegowski)

WASHINGTON, D.C.— A franchise buyer's most fundamental question is, "How much can I make with this business?" Obtaining a straight-forward answer to that question has been like finding the proverbial needle in a haystack.

DLA Piper’s Top 10 Franchise Cases of 2015, Part 3

In Part 3 of DLA Piper's Top 10 Franchise Cases of 2015, partner John F. Verhey presented the topic for the eighth legal case with this question: What's the most effective way to enforce remodeling requirements against your franchisees?

FTC Smacks The Entrepreneur’s Source over Buyer Deception

Terry Powell, founder of The Entrepreneur's Source talks about smart investing
Founder Terry Powell talks about franchise buying on YouTube

WASHINGTON, D.C. – While franchise brokerage/consultant firm The Entrepreneur's Source (TES) promotes its image as "helping people improve their lives," the Federal Trade Commission (FTC) found otherwise after launching an investigation into the firm's business practices regarding privacy and security.

SEIU Petitions FTC to Investigate Franchisors' Predatory Abuse of Franchisees

Man tames commerce, franchisee bridles wild franchisor
Statue in front of Federal Trade Commission of man taming the wild horse of commerce. photo/sniegowski

WASHINGTON, D.C. – The Service Employees International Union yesterday petitioned the Federal Trade Commission, the regulatory body for franchising, to launch an investigation into the $800 billion franchise industry on predatory abuses by franchisors of franchisees.

Does an Unclear FDD Indicate a Possible Disguised Franchise?

If you've recently decided to buy a franchise and are ready to start the process to owning your own business, then you are probably aware of the fact that one of the first documents that a franchisor should give you is a disclosure document.

Francine Lafontaine Appointed as Director of FTC’s Bureau of Economics

WASHINGTON – The Federal Trade Commission has appointed Francine Lafontaine as Director of the FTC's Bureau of Economics, succeeding Martin Gaynor, who is returning to Heinz College at Carnegie Mellon University. The Director supervises economic analysis at the Commission and advises the agency on economic policy matters.

Are Franchisees Agents of Franchisors?

Did you read that a federal district court in Utah recently found evidence that a Best Western franchisee was actually the "agent" of the franchisor? The evidence was based on the fact that Best Western had strict requirements for its franchisees, showing its ultimate authority.

ColorTyme Sued for Using PC Rentals to Spy on Customers' Private Lives

Franchisor Colortyme is alleged to have spied on its customers via computer cameras

A class action is being sought against ColorTyme and its franchisees for using DesignerWare spyware on people who rented or bought computers from them. The spying included taking web cam photos while customers were in the privacy of their homes, accessing communications and recording key strokes.