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Log In / Register | Apr 20, 2014

Are Franchisees Agents of Franchisors?

Did you read that a federal district court in Utah recently found evidence that a Best Western franchisee was actually the "agent" of the franchisor? The evidence was based on the fact that Best Western had strict requirements for its franchisees, showing its ultimate authority.

ColorTyme Sued for Using PC Rentals to Spy on Customers' Private Lives

Franchisor Colortyme is alleged to have spied on its customers via computer cameras

A class action is being sought against ColorTyme and its franchisees for using DesignerWare spyware on people who rented or bought computers from them. The spying included taking web cam photos while customers were in the privacy of their homes, accessing communications and recording key strokes.

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.

FTC Issues Final Business Opportunity Rule

Man bridling his horse statue outside FTC building
'Man Controlling Trade.' Statue outside FTC Building.

WASHINGTON — The Federal Trade Commission released its final amended Business Opportunity Rule today, which will go into effect on March 1, 2012. The new disclosure regulation aims to lighten the federal compliance burden for business opportunity sellers and help their prospective buyers assess the risks. 

The Cleaning Authority Cleans Out Franchisee Retirement Fund

You can't kickback money to yourself, a court tells Cleaning Authority zees.

CNBC Documentary to Include BMM

On Wednesday, December 15th CNBC will air an hour long program, "Behind the Counter: The Untold Story of Franchising." I can’t recall any television program devoting this much time to the franchise industry.

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.

Tombstone Legislation

The term ‘Tombstone Technology’ came about following a catastrophe that took only minutes and claimed a record 349 innocent lives.  Families were left shattered and others were embarrassed.