Franchising & Distribution Law Blog

Franchisors are usually focused on updating disclosure documents annually. What can oftentimes be overlooked is the ability to amend the offering during the year or the requirement to do so upon the occurrence of certain events. Determining when a "material" change has occurred can be difficult, and navigating the amendment process lacks uniformity in application and can affect the sales process dramatically.

FTC Franchise Rule FAQ on Exclusivity

The FTC published new guidance on October 16 explaining that franchisors who exclude non-traditional locations from their otherwise exclusive territory grants cannot refer to these territories as "exclusive" for purposes of their Franchise Disclosure Documents. Franchisors that reserve airports, stadiums, food courts and other non-traditional venues should make sure their FDD is compliant.

Dan Garner's most recent article discusses the surprisingly extensive ramifications of gift card laws, from both a legal and practical perspective. The article was published in the October 2012 edition of Law Journal Newsletters Franchising Business & Law Alert.

Read the article to learn more about the potential ramifications of gift card laws.

On September 7, the United States Court of Appeals for the Eighth Circuit refused to lower the high standard for a franchise agreement to be considered perpetual under Missouri law.