16 CFR 436.5 - Disclosure items

Cite as16 CFR 436.5
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48 practice notes
  • Telemarketing Sales:
    • United States
    • Federal Register August 10, 2010
    • August 10, 2010
    ...appended to Thompson Med. Co., 104 F.T.C. at 813 (``Advertising Substantiation Policy Statement''); see also Amended Franchise Rule, 16 CFR 436.5(s), 436.9(c); Franchise Rule Statement of Basis and Purpose, 72 FR 15444, 15449 (Mar. 30, 2007). If the advertisement expressly or impliedly repr......
  • Legacy Acad., Inc. v. Mamilove, LLC, No. A14A0718.
    • United States
    • United States Court of Appeals (Georgia)
    • July 16, 2014
    ...and the information must be included in the disclosure documents provided at least 14 days before the agreement is executed. 16 CFR § 436.5(s). Further, the Rules state as follows:If the franchisor makes any financial performance representation to prospective franchisees, the franchisor mus......
  • Vino 100, LLC v. Smoke on Water, LLC, Civil Action No. 09–4983.
    • United States
    • United States District Courts. 3th Circuit. United States District Court (Eastern District of Pennsylvania)
    • March 30, 2012
    ...franchisees disclosure documents that contain prescribed information about the business opportunity being offered. 16 C.F.R. §§ 436.2, 436.5. A franchisor's failure to disclose the information required by Rule 436 is an unfair or deceptive trade practice that violates § 5 of the Federal Tra......
  • A Love of Food I, LLC v. Maoz Vegetarian USA, Inc., Civil Action No. 12–CV–1117KBJ
    • United States
    • United States District Courts. United States District Court (Columbia)
    • September 30, 2014
    ...has promulgated regulations titled “Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures,” 16 C.F.R. § 436 (2013) (commonly known as the “Franchise Rule” see John Bourdeau, et al., 62B Am.Jur.2d Private Franchise Contracts § 26 (2d ed.2014) ), wh......
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34 cases
  • Legacy Acad., Inc. v. Mamilove, LLC, No. A14A0718.
    • United States
    • United States Court of Appeals (Georgia)
    • July 16, 2014
    ...and the information must be included in the disclosure documents provided at least 14 days before the agreement is executed. 16 CFR § 436.5(s). Further, the Rules state as follows:If the franchisor makes any financial performance representation to prospective franchisees, the franchisor mus......
  • Vino 100, LLC v. Smoke on Water, LLC, Civil Action No. 09–4983.
    • United States
    • United States District Courts. 3th Circuit. United States District Court (Eastern District of Pennsylvania)
    • March 30, 2012
    ...franchisees disclosure documents that contain prescribed information about the business opportunity being offered. 16 C.F.R. §§ 436.2, 436.5. A franchisor's failure to disclose the information required by Rule 436 is an unfair or deceptive trade practice that violates § 5 of the Federal Tra......
  • A Love of Food I, LLC v. Maoz Vegetarian USA, Inc., Civil Action No. 12–CV–1117KBJ
    • United States
    • United States District Courts. United States District Court (Columbia)
    • September 30, 2014
    ...has promulgated regulations titled “Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures,” 16 C.F.R. § 436 (2013) (commonly known as the “Franchise Rule” see John Bourdeau, et al., 62B Am.Jur.2d Private Franchise Contracts § 26 (2d ed.2014) ), wh......
  • Zotbelle, Inc. v. Kryolan Corp., Civil Action No. 17-cv-11411-ADB
    • United States
    • United States District Courts. 1st Circuit. United States District Courts. 1st Circuit. District of Massachusetts
    • September 23, 2019
    ...52 are elements required to state a viable claim under Chapter 93A. [ECF No. 52 at 25].1. Disclosures Required by 16 C.F.R. §§ 436.2, 436.5(k), (q) Zotbelle argues that Kryolan's failure to provide the disclosures specified in 16 C.F.R. § 436.2 and § 436.5(k), (q) is a per se violation of C......
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4 firm's commentaries
  • Does Arbitration Make Sense For Franchisors? A Litigator’s Perspective
    • United States
    • JD Supra United States
    • October 31, 2017
    ...presented by a franchisor to prospective buyers of franchises during the franchise pre-sale disclosure process in the United States. [22] 16 CFR 436. [23] Cal. Code Reg. §§ 310.111(b), 310.114.1. [24] See 16 CFR § 436.5(c). [25] Wimsatt v. Beverly Hills Weight Loss Clinics Int'l, Inc., 32 C......
  • Taking The Leap: Bringing A Foreign Brand To The United States
    • United States
    • JD Supra United States
    • April 3, 2014
    ...very early in the investigation of whether the brand and the business model will be financially attractive for franchisees in 5 16 C.F.R. §436.5(g)(1)(i)(D). the U.S., particularly if any goods or inventory must be imported. If there will be a need for imported products, the franchisor will......
  • ABCs of Franchising: Who Is a Franchisor?
    • United States
    • JD Supra United States
    • June 29, 2018
    ...ranging from the franchisor’s parents, predecessors and affiliates to information about a prospective franchisee’s initial investment.4 16 C.F.R. 436.5. The FDD must be provided to a prospective franchisee at least 14 calendar days before the prospective franchisee signs an agreement with a......
  • THE LEAP OF FAITH-HOW TO ACQUIRE A FRANCHISOR
    • United States
    • JD Supra United States
    • April 1, 2013
    ...Rev. Stat. § 87-401 17 KY. Rev. Stat. Ann.§ 367.805 18 1Tex. Admin. Code § 97.1 19 Utah Admin. Code R152-15-2 20 16 C.F.R. § 436.2 21 16 C.F.R. § 436.5 22 Id. SHARE ATTORNEY SUITE 225 E. Carrillo St. #202 Large office with shared common area reception and secretary area copy machine and fax......
6 books & journal articles
  • Franchising and the Parol Evidence Rule
    • United States
    • American Business Law Journal Nbr. 50-3, September 2013
    • September 1, 2013
    ...§ 436.3 (West 2013). Note that theamended rule does not require the franchisor to submit information on its financial perfor-mance. See 16 C.F.R. § 436.5(s)(1), (2) (West 2013). If, however, it fails to give these financialparticulars, the franchisor must notify the franchisee that informatio......
  • Introduction to Practical Problems and Issues Associated with Buying or Selling a Franchise Company
    • United States
    • Mergers and Acquisitions of Franchise companies
    • January 1, 2014
    ...on FrAnchising, tAB W‑7 (2010). 6. Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures, 16 C.F.R. § 436 (1978), reprinted in Bus. FrAn. guide (CCH) ¶ 6090 et Vines_Mergers_20140521_13-42 FINAL.indd 8 6/3/14 1:26 PM Introduction to Practical Prob......
  • Franchise Disclosure and Sales Compliance
    • United States
    • Franchise Law Compliance Manual, Second Edition
    • January 1, 2011
    ...directed at members of the public interested in purchasing a franchise. See FED. TRADE COMM’N, supra note 36, at 133 (2008). 60. 16 C.F.R. § 436.5(s)(3) (2008); FED. TRADE COMM’N, supra note 36, at 133–35. 61. FED. TRADE COMM’N, supra note 36, at 62. Id. at 134. 63. Id. 64. 16 C.F.R. § 436 ......
  • Registration
    • United States
    • Fundamentals of Franchising, Fourth Edition -
    • January 1, 2015
    ...(North Dakota); R.I. GEN. LAWS § 19-28.1-6.10; WASH. ADMIN. CODE § 460-80-530. 71. Bus. Franchise Guide (CCH) ¶ 6062, n. 653. 72. 16 C.F.R. § 436.5(u). Chapter 4 Registration the franchisor is free to offer and sell franchises in all states outside of the registration states, regardless of ......
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