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- Taco Bell Meat Integrity Questioned in Class Action Lawsuit...
Posted on 2/2/2011 - Franchising Documentary Damages Cold Stone Creamery Franchises...
Posted on 1/17/2011 - Noble Roman’s Inc. Wins One Lawsuit, Starts Another...
Posted on 1/13/2011 - Successful Franchises Listen to Customer Demand...
Posted on 1/12/2011 - Kid’s Clothing Store Sues for Trade Secret Theft...
Posted on 12/9/2010
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Franchisor Services
What information does the FDD include?
A:
According to the Federal Trade Commission (FTC), a Franchise Disclosure Document (FDD) must include:
- Your company's latest annual balance sheet, as of the end of the 2 most recent fiscal years;
- A statement of operations for the 3 most recent fiscal years;
- A statement of stockholders' equity for the 3 most recent fiscal years;
- A statement of cash flows for the 3 most recent fiscal years; and
- Any lawsuits or bankruptcies in the company's history.
This information must be provided in the FDD to all potential franchisees. And it must be provided at least 14 calendar days before you sign a franchise agreement. If you omit or misrepresent any of this information, you will be in violation of New York franchise law, and therefore you may be held liable in a New York franchise lawsuit.
Once the FDD is delivered, and both parties wish to proceed, the terms of the business relationship will be established in the franchise agreement. These terms will include the use of the company's name and trademarks, the required royalty fees, as well as the business assistance that will be provided by the franchisor. If you have questions regarding the FDD, you can get the professional advice of a New York franchise attorney.
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.
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.
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