Automobile Dealers Face Termination
The economic recession, which became evident in 2008, has already caused much hardship. Now, automobile dealers in Florida and around the nation are faced with the prospect of … Read
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Financially Stressed Franchises
It has been widely reported that franchisee loan defaults rose significantly in 2007 and 2008. One may expect that trend to continue as the economy continues to suffer. Because of the complex terms and varying obligations contained in modern franchise agreements, a financially stressed franchisee should obtain experienced legal advice before attempting to resolve his or her business problems. Some points to consider should be:… Read
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Do You Want a Lawsuit With That Tune-up?
Businesses, such as retailers or service providers, often wish to use another company=s protected name, trade dress or logo in association with the marketing of their own business. The marketer believes this is proper since it sells, repairs or offers services specific to the other company's goods or services. However, when done without first having obtained the other company's permission, marketing in this manner can bring about significant legal problems under both state and federal law.… Read
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UFOC Format Obsolete Beginning on July 1, 2008 at 12:01 a.m.
The Uniform Franchise Offering Circular (UFOC) format, in use as an acceptable alternative for Federal Trade Commission (FTC) disclosure compliance since 1994, will become obsolete on July 1, 2008. At that time, franchisors may only use the new Franchise Disclosure Document (FDD) format to comply with the amended FTC Rule. … Read
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Beware of Illegal Pyramid Schemes
Business opportunities are offered in various formats. One is the Multilevel Marketing (“MLM”) business model. Many legitimate companies in the MLM industry lawfully charge low fees to distributors for the right to sell the company’s products, offer refunds on resalable inventory and their distributors actually derive income from the retail sale of products to end-users. However, some illegitimate companies operate pyramid schemes in which… Read
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So What Do I Need To Do With This Disclosure Document?
It is very important that you actually read the franchise disclosure document to learn those things which the franchisor is disclosing to you, and to inform yourself as to the issues discussed in it. … Read
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Be Careful When Relying Upon a Franchisor’s Financial Performance Claims
Prospective franchisees have often been incorrectly told that federal law prohibits a franchisor from disclosing financial performance information to the prospect prior to his or her becoming a member of the franchise system. The newly revised Federal Trade Commission Franchise Rule now requires … Read
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FTC Announces Proposed Biz. Op. Rule
The Federal Trade Commission ("FTC") has announced its proposed "Business Opportunity Rule", 16 C.F. R. Part 437, which will create regulations for the offering for sale of business opportunities separate from those controlling the offering for sale of franchises. The text of the FTC's Revised Notice of Proposed Rulemaking can be found at http://www.ftc.gov/os/2008/03/R511993business.pdf… Read
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Federal Trade Commission Announces Rule Changes
The Federal Trade Commission ("FTC") announced amendments to its so called Franchise Rule, 16 C.F. R. Part 436, with a phase-in period of one year beginning on July 1, 2007. … Read
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Electronic Data Discovery Impacts Small Businesses Threatened With Litigation
Business data used to be recorded upon paper and filed in manila folders within a cabinet. Not anymore! Most businesses have taken advantage of the computer age to go "paperless". Without realizing it, many businesses have electronic data stored throughout their offices. … Read
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