Does the transfer of an existing franchise trigger a franchisor's FDD disclosure obligations.

 

A: No. Under the Federal franchise Rule a franchisee's transfer of an existing franchise agreement does not constitute a franchise sale and therefore does not trigger a franchisors FDD disclosure obligation provided that the franchisor has not had significant involvement with the prospective transferee.

IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.

Click here to view our privacy policy