|Vol. 14 No. 2 | Spring 2011|
INSIDE THIS EDITION
THE FRANCHISE LAWYER
Beata Krakus (2013)
Forum on Franchising
NASAA Project Group Seeks Input on Multi-Unit Franchising
Multi-unit franchising involves many types of arrangements, including, for example, area development or representation agreements, area or regional franchises, development agent agreements, master franchises, and subfranchises. Franchisors using these arrangements, and other parties involved in these arrangements (area developers, development agents, subfranchisors, etc.), often have questions about their disclosure obligations under the FTC Franchise Rule and state franchise laws.
The Franchise and Business Opportunities Project Group ("Project Group") of the North American Securities Administrators Association ("NASAA") is beginning work on a new Commentary that will address a wide range of issues on multi-unit franchising and provide practical guidance about the disclosure obligations of all involved parties.
Some multi-unit franchising issues already have been addressed by the FTC in FAQs 9 and 13, by NASAA in Sections 20.2, 20.3 and 20.4 of its 2009 Commentary on its 2008 Franchise Registration and Disclosure Guidelines, and by California in its Release 18-F. The Project Group, in consultation with the staff of the FTC and state franchise examiners, intends to give expanded guidance on those and other issues in the new Commentary.
The Project Group seeks your input on issues, ambiguities or problems that you believe should be addressed in the new Commentary; any resolutions or solutions that you propose; and any relevant cases, statutory provisions, regulations, papers or other resources that you believe should be considered.
While the Project Group's original deadline for submitting suggestions has passed, they will endeavor to review any suggestions they receive by Friday, May 27, 2011. Please send your input to firstname.lastname@example.org and email@example.com if you are comfortable sharing your ideas with attribution. If you would prefer to share your ideas on a confidential basis without attribution, please send your input to firstname.lastname@example.org, email@example.com or firstname.lastname@example.org.
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