Changes to the Indiana Franchise Law were recently passed and become effective on July 1, 2020. One of those changes is the addition of a duty on the part of the franchisor to file an amendment application and the amended Franchise Disclosure Document with the state within 30 days after the franchise undergoes any material change. Under the current law, if a franchisor's Franchise Disclosure Document was amended during the registration year for material changes, the franchisor was not required to file an amendment application with Indiana in order to begin using the amended FDD in that state.
The Indiana Secretary of State, Securities Division recently announced that it has launched its Indiana Securities Portal and that as of January 1, 2020, all franchise registration applications must be filed electronically through the Portal. Any paper filings or e-mail filings sent to the IN Securities Division will be sent back to the sender.
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.
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.
Website Compliance with the Americans with Disabilities Act (ADA)
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:
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.
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.
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.
You may be considering franchising your business for a number of reasons. You may want to expand your business but don't have the capital to open numerous additional locations on your own. You may have people approaching you about buying a franchise because they love your business concept. You may like the idea of the brand and business you have built opening up in locations all over the country. However you come to the point of considering franchising, there are some initial steps to take before you launch into establishing a franchise program.