Events

Leveraging Franchising Exemptions From Federal Franchise Disclosures and State Registration

February 26, 2020 at 1:00pm2:30pm
Strafford
Webinar

Franchise businesses put nearly $750 billion into the U.S. economy annually and employ almost eight million people. New franchised brands appear daily. Every player must comply with the overlapping regimes of federal and state franchise laws. Counsel must develop sufficient expertise in those laws, and determine if any exemptions or exclusions are available to help reduce the time and expense of the disclosure and registration process, which can serve as a barrier to entry for your clients.

The FTC requires franchisors to prepare an FDD and some states require that the FDD be registered with a state agency. The FDD is a lengthy document requiring disclosure of 23 different items, including financial statements. This document alone costs thousands of dollars to create and can delay market entry. State registrations add to the expense and complexity of a franchise offering.

The state and federal laws are not uniform and avoiding disclosure and/or registration can be complicated because of the patchwork of laws. The webinar will take a close look at both the federal and state exemptions related to the size and sophistication of the parties, amount of investment, type of business transaction and finally, "the availability of discretionary exemptions." However, it is important to note that just because a relationship is exempt under federal law will not necessarily be exempt under state law and vice versa.

Listen as our panel of experienced franchise attorneys provides technical expertise and real-world problem-solving guidance on these complex issues. This guidance will enable all corporate lawyers to spot vital issues and propose and implement solutions to those issues.

Outline

  • Definition of a franchise
  • Federal franchise exemptions
  • State summary
    • Non-registration states
    • Filing states
    • Registration states
  • State franchise exemptions

Benefits

This panel will review these and other essential matters:

  • Key steps to identifying if an exemption or exclusion is available
  • An explanation of the various exemptions available under federal and state law
  • Compliance requirements in order to take advantage of an exemption
  • The complexity and interplay of the federal and state franchise laws

CLE credits offered.

*Please note there is a cost to attend.