FTC Franchise Disclosure Rules and Regulations

January 26, 2017 at 1:00pm2:30pm
Lorman Education Services

Understand how the FTC Franchise Disclosure Rules work to avoid franchisee claims and speed up the registration process.

Business owners seeking expansion, need to choose franchising rather than limited partnerships, or bank financing for building their reach and brand. Franchising does involve additional regulatory hurdles but has been the only choice for the largest companies in the world to expand their markets using franchisee investment of time, money and capital. This topic will help you identify when your client's business is right for franchising and required to comply with the registration and disclosure protocols required by the Federal Trade Commission Rules and state regulations. If your clients' companies are already within the regulatory regime, this material will share best practices in drafting, and gaining approvals by regulators. Even if your clients are not franchising yet, understanding how the franchise rules work is essential to properly advising your clients and helping them grow their brand.

Learning Objectives

  • You will be able to describe what triggers the disclosure rules.
  • You will be able to identify whether the business is subject to regulation and disclosure under the FTC and other state regulations.
  • You will be able to recognize how to avoid the pitfalls that can trigger litigation and make your registration and disclosure practices more efficient.
  • You will be able to review how to draft an effective franchise disclosure statement and use best practices informing franchisees how much they can make consistent with the FTC Rule.