Item eighteen is titled public figures.1 This item requires the franchisor to list any public figures that are compensated for their aid in selling franchises. Although there was a critique to abolish this item since it is rarely used, the...
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Items five through seven concern fees and the initial investment costs.1 Item seven is the estimated initial investment; in the case that the amount of payment is unknown (e.g., real estate costs) the franchisor may give a low-high range based on...
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The items listed in the Federal Disclosure Document contain necessary information about the franchisor that enables the prospective franchisee to make an informed decision about whether to invest in the franchise system in the U.S. Respectively,...
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Franchising is only regulated on the Federal level by the Federal Trade Commission through disclosure requirements,1 referred to as the Franchise Rule,2 and the current version’s effective date was July, first, 2007.3 However, specific industries...
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Recently the New York times posted an article titled, “Subway Got Too Big. Franchisees Paid a Price” (06.30.2019) where it talks about the treatment of some franchisees in the Subway franchise system.
According to the article, franchisees feel...
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The de minimis principle originated from Court of Justice of the European Union (CJEU) jurisprudence which has specified that EU competition laws, specifically Article 101 (1) Treaty on the Functioning of the European Union, (TFEU), are not...
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In 1988 the Commission decided the case of Charles Jourdan, which submitted their application for the exemption in Article 101(3) TFEU in 1985.1 The Commission stated that, similar to the Pronuptia case and previous Commission Decisions we have...
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Choosing the apt franchise attorney is one of the most challenging decisions that would make you a franchisor. It’s a very essential step as the documents that we give to the franchise lawyer are genuine and their advice and suggestions can either...
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To understand the foundation of franchise law in the EU, we must first address the jurisprudence of the Court of Justice of the European Union (CJEU). The most important case relating to franchise law in the EU is the Pronuptia case,1 which led to...
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The franchise business itself is quite the risky and complex thing for a new entrepreneur. On the other hand, the brand name can give you the assurance of success. However, the main obstacle can be considered is the hurdle of legal procedure. It is...
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