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Log In / Register | Apr 23, 2017

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.

Area Developer

A development area is the territory in which the area developer will locate its franchise units. You need to make sure that the franchisor gives you exclusive rights to the development area so that the franchisor cannot open company-owned units or grant a franchise to another party within your development area.

NASAA’s Proposed Multi-unit Commentary Clarifies Key Terms

The Franchise and Business Opportunity Project Group of the North American Securities Administrators Association (NASAA) recently released a proposed commentary on multi unit franchise arrangements.

NASAA Wants Zors to Come to Terms

Area RepresentationWASHINGTON—You say tuber. I say potato. In franchising, Subway says development agent. I say subfranchisor. And you say master franchisee.

Real World Roadblocks to Regulation Change

There is no doubt in my mind that if none of the states required close scrutiny of initial registration disclosure documents, and some review of annual filings was not done [It's not.], the quality of disclosure to franchisees would deteriorate from pretty good to very bad.

Regulating Franchising, Part 2

Capitol Building in Washington D.C.
The U.S. Capitol Building from Pennsylvania Avenue. photo/bmm

LEXINGTON, Ky. – Associate Professor Elizabeth Crawford Spencer discusses why a revision of franchise regulation is necessary in this final part of her two-part interview. Spencer's timely book comes out as major legislation to curb franchising abuse has emerged from New England to California, from Canada's Manitoba to South Australia.