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Log In / Register | Apr 16, 2014

Ohio Passes Law to Protect Franchisees

COLUMBUS, Ohio — Ohio has passed a law that goes beyond many other states in its attempt to curb abusive franchising practices. The revised Ohio Business Opportunity Law protects the state's franchisees' right to sue a franchisor for false or untimely disclosure, ensures that Ohio law reigns supreme and attempts to safeguard that disputes be resolved in Ohio, not elsewhere.

Real World Roadblocks to Regulation Change

There is no doubt in my mind that if none of the states required close scrutiny of initial registration disclosure documents, and some review of annual filings was not done [It's not.], the quality of disclosure to franchisees would deteriorate from pretty good to very bad.

When Is a License Really a Franchise?

The Federal Trade Commission Franchise Rule, 16 C.F.R. 436.1 et seq., governs, at a federal level, disclosures which a "franchisor" must provide to each prospective franchise. There are also numerous state laws which may apply in any given situation.

Legacy Academy Franchisor Loses Again

The controversial franchisor has found federal court no more hospitable than state court or the AAA.

Super 8 Barred From Imposing New Loyalty Program Fees

Under the FTC Franchise Rule, a franchisor is required to disclose in Item 6 of its Franchise Disclosure Document (FDD) all recurring or occasional fees associated with operating a franchised outlet.

Federal Judge: Franchising Sounds Like Ponzi Scheme

Is franchising "a modified Ponzi scheme?" Last week, a federal judge said it might be.

Franchisors Ask New York for More Time on Unanticipated Rule

WASHINGTON – A trade association representing over a thousand franchising firms has urged the state of New York to postpone a newly created rule that requires national franchise chains to submit the entities of in-state franchise owner-operators and their annual transaction information for tax gathering purposes.