New Rules on Earnings Claims- Which Franchise Brands Do They Hurt or Help?

“How Much Money Can I Make with Your Franchise Brand?” The New Rules on What You Can Say —-

The FTC permits a franchisor to make financial performance representations, also called “FPRs” or “earnings claims”, in Item 19 of its franchise disclosure document, “FDD”.

The franchisor has to have “a reasonable basis” for the representations.

Starting next year, early 2018, the rules for FPRs will change for many franchisors.

Here is just one example of the effects of the changes.

Some franchisors provide just average or median sales information in their Item 19.

But, starting in 2018, franchisors will need to add highest and lowest sales in the sample set.

There are many more changes, which our panel will helpfully point out to you.

This matters to you, your franchise brand, and how you sell franchises in a lawful manner.

You need to stay up to date on these changes.

CAFA has a terrific panel of well regarded state regulators & highly experienced franchise attorneys to help you out.

So, come to CAFA on Tuesday, September 19th to find out which of your franchise selling practices will be affected by the new rules & what you can do to prepare for these changes.

Dale Cantone – is an Assistant Attorney General for the State of Maryland and the Deputy Securities Commissioner for the Maryland Securities Division.

Dale is the chief of the franchise and business opportunity unit of the Maryland Securities Division. In addition, since 1996, Dale has served as Chair of the Franchise and Business Opportunity Project Group of the North American Securities Administrators Association, Inc. (“NASAA”).

NASAA is a group of state administrators that proposes model laws, policies, and initiatives to promote investor protection as well as uniformity at the state level. Among other initiatives, NASAA authored the Uniform Franchise Offering Circular Guidelines.

Tim O’Brien — Chief Examiner Virginia Division of Securities & Retail Franchising Richmond, Virginia

The Virginia Division of Securities and Retail Franchising is responsible for the regulation of securities, broker-dealers, broker-dealer agents, investment advisers and their representatives.

It is also responsible for the registration of franchises and trademarks in Virginia.

David Cahn, Franchise Attorney since 1995, speciality practice focused on franchise relationships, extensive experience with regulatory compliance, transactions involving franchised businesses and disputes between franchisors and franchisees.

Warren Lee Lewis, Moderator, is the author of The Franchise Seller’s Handbook.

And recently awarded, The Best Lawyers in America 2009-2016, Listed in Washington, D.C. for Franchise Law

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