Legal Counsel FAQ's
What is a New Jersey "closely held company?"
A New Jersey closely-held company is a company that…
What is secondary meaning in relation to trademarks?
Secondary meaning is the power of a name or other configuration to symbolize a particular business, product, or company.
What is "Prop 65"?
Prop 65 is California's Proposition 65.
Must a FDD be Amended Prior to Negotiating and Changing a Franchise Agreement?
No - if the change benefits the franchisee and was negotiated by the franchisee.
How much should I tell potential franchisees about costs at a franchise trade show?
Well, first and foremost you must absolutely ensure that whatever information that you discuss and provide to prospective franchisees is disclosed in your FDD.
When does a franchise amendment application need to be filed?
A franchise amendment application needs to be filed if you have a franchised business in a franchise registration state and a material change has been made to your Franchise Disclosure Document ("FDD").
What information is required for franchise renewal in California?
The California franchise renewal process requires that a California Renewal Application be submitted in the same format as the original registration and must also include all documents that are required for initial registration.
What does "nonrenewal" of a Franchise Mean and Involve?
If you are in the business of selling franchises, there will come a time when you must renew the franchise agreement with your franchisees.
What is a Franchisor's "Affiliate" under the Federal Franchise Rule?
Under the Federal Franchise Rule an affiliate is defined as a person…
What Franchisor Affiliates Must be Disclosed in a FDD?
For both start-up and established franchisors the disclosures contained in your Franchise Disclosure Document ("FDD") apply not only to the primary corporate entity that serves as the franchisor but also "affiliated" entities.
What do Trademarks Cover?
Trademarks are most commonly associated with the name of your business.
Does Extending or Renewing a Franchise Agreement trigger a Franchisor's FDD Disclosure Obligation?
No. Under the Federal franchise Rule the extension or renewal of a franchise agreement does not constitute a franchise sale and therefore does not trigger a franchisors FDD disclosure obligation provided that there has been no interruption in the franchisee's business operations and provided that the renewal agreement does not differ materially from the original agreement.
Does the transfer of an existing franchise trigger a franchisor's FDD disclosure obligations?
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.