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Franchisees to Regulators: Franchisors Must Disclose Franchise-Level Profits

Alexander Hamilton
Where's the money? Alexander Hamilton on $10 bill. (Photo: Sniegowski)

WASHINGTON, D.C.— A franchise buyer's most fundamental question is, "How much can I make with this business?" Obtaining a straight-forward answer to that question has been like finding the proverbial needle in a haystack.

67% of Franchisors Now Submit an Item 19

As the publisher of four annual books on franchising and the manager of twelve websites that deal solely with franchising, I have long been fascinated with the increasingly favorable trend among franchisors to provide Financial Performance Representations (Item 19s) in their Franchise Disclosure Documents (FDDs).

A Business Plan Should be a Requirement for Buying a Franchise

Visit any website that offers advice on starting a new business or expanding an existing one and you’ll find articles and advice on the importance of writing a business plan. There are tips ranging from how to write an effective business plan to the reasons why it’s so important.

2011 Lawsuits through the Eyes of DLA Piper

WASHINGTON – As we are now well into 2012, a look back at last year’s pertinent legal cases is important for franchisors and their attorneys.

False Denial By Franchisee Creates Triable Issue of Fact

The Hockey Enterprises saga continues, with an interesting twist.

Kiddie Academy Earnings Claims Disclaimed

When is an earnings claim not an earnings claim? When made on FranchiseGator or to the SBA.

Ideal Image Laser Franchisee Gets Another Chance

Reversing in part, the 11th Circuit holds that sometimes a corporation may have standing even though unformed at the time a cause of action accrued.

"Incredible Pizza" Franchisee Loses $46 Million

Lloyd Robert French invested in a new franchise concept and lost $46,995,735 in 6 years.

Cold Stone Creamery v. Lenora Foods

Don't believe financial performance representations made by the franchisor. And don't believe representations made by franchisees, either.

Franchisor Earnings Claims

Nobody buys a franchise without having some model or idea about how profitable the franchise will be.  Some of these models or ideas are good, some wrong, and some just dumb.