Christine, Doris and Alissa have just returned from Denver after attending the 2019 American Bar Association Forum on Franchising annual 2-day franchise law seminar. While the attorneys at Carter & Tani have many years of experience and are seasoned franchise law attorneys, they make it a point each year to attend this annual franchise law seminar in order to keep current with new developments in the law that affect franchising and their franchise clients. Topics this year included updates on joint employer issues (including a workshop on the newly passed California Assembly Bill 5), anti-poaching cases and regulatory enforcement, application of new technology in franchise systems, and the current review of the FTC Rule. The annual update on franchise case law and the annual regulatory update presented by state franchise regulators is always informative. In addition, Alissa attended an intensive half-day workshop on the creation of a start-up franchise system. If you would like to hear more about the seminar and the new developments discussed, contact one of our attorneys.
Carter & Tani Sponsors Great Prairie Trail CROP Hunger Walk 2019
Carter & Tani sponsored the Great Prairie Trail CROP Hunger Walk 2019, which was held on Sunday, October 6, 2019. Additionally, both partners participated in the 3-mile walk.
Availability and Requirements for Online Franchise Registration Filings
Of the states that require registration or filing of franchisors' Franchise Disclosure Document (FDD) (California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington and Wisconsin), only California, Minnesota, Rhode Island, Washington and Wisconsin have online filing options. Of those 5 states, only Washington and Wisconsin require online filing. Wisconsin has required online filing for several years. However, Washington has only recently stopped accepting paper filings. We have researched the online systems and what is needed for these filings to prepare us for the 2020 renewal season.
New NASAA State Cover Sheets
NASAA (the North American Securities Administrators Association, Inc.) has adopted a new format for the State Cover Sheets that appear in Franchise Disclosure Documents ("FDDs") filed as part of state franchise registration applications. Below are some FAQs on this new requirement:
Website Compliance with the Americans with Disabilities Act (ADA)
Website Compliance with the Americans with Disabilities Act (ADA)
Do You Have Anti-Poaching Covenants in Your Franchise Agreement?
There has been a fair amount of discussion in the franchising world recently about anti-poaching. Anti-poaching refers to provisions in franchise agreement that prohibit a franchisee from hiring the employees of the franchisor or the employees of other franchisees in the franchise system. A typical in-term covenant might read as follows:
Happy Holidays and Prosperous 2019 from Carter & Tani
During the holiday season, we pause to reflect on the past year and we are reminded of how fortunate we are on both a business and personal level. We are enriched in many ways by our relationship with our clients and business associates.
So you want to franchise your business... Part 4 of 4
Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. Part 2 of this blog series addressed preparation of the legal documents required under federal and state franchise law - the Franchise Agreement and the Franchise Disclosure Document ("FDD"). Part 3 of this blog series addressed state registration of franchises. This blog addresses compliance with franchise laws as a new franchisor begins offering and selling franchises. In addition to franchise disclosure and registration requirements, the federal and state franchise laws cover actions that must be taken when offering and selling franchises and actions that are prohibited in the offer and sale of franchises.
So you want to franchise your business... Part 3 of 4
Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. Part 2 of this blog series addressed preparation of the legal documents required under federal and state franchise law - the Franchise Agreement and the Franchise Disclosure Document. This blog addresses state registration of franchises.
So you want to franchise your business... Part 2 of 4
Part 1 of this blog series addressed business issues to consider in deciding whether to franchise your business and preparations to be made before launching a franchise program. This blog assumes that you have made the decision to franchise your business and you are ready to engage a franchise attorney to assist you with the legal compliance. The first step in legal compliance is to prepare a Franchise Agreement and the Franchise Disclosure Document required by federal and state franchise laws.
