FRANCHISE LAW UPDATE:

            Beginning on July 1, 2008, franchisors must comply with the amended Federal Trade Commission ("FTC") rule entitled, "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunities" ("Franchise Rule").[1]  The Franchise Rule requires that franchisors provide certain information to potential franchisees for the purpose of evaluating the business and making an informed investment decision.  These required disclosures are contained in a Franchise Disclosure Document ("FDD").  Between July 1, 2007 and July 1, 2008, franchisors may continue to follow the original Franchise Rule[2] or may choose to comply with the amended Franchise Rule. 

Download pdf document