FTC Releases Franchise Rule Compliance Guide

The Compliance Guide also sheds light on the meaning of management responsibility in the context of Item 2, specifying that it includes all individuals, regardless of their formal title, who manage franchise sales or operations to the extent that a prospective franchisee would rely on their expertis...

Full description

Saved in:
Bibliographic Details
Published inFranchise law journal Vol. 28; no. 1; pp. 20 - 22
Main Authors Gilbert, Jan S., Loonam, Suzie
Format Journal Article
LanguageEnglish
Published Chicago American Bar Association Forum on Franchising 01.07.2008
American Bar Association
Subjects
Accounting policies
Audited financial statements
Auditing standards
Book value
Business
Compliance
Compliance certificates
Confidentiality
Contracts
Disclosure
Financial performance
Financial statements
Franchise agreements
Franchisees
Franchises
Generally accepted accounting principles
Good faith
Investment companies
Litigation
Public figures
Sales
SEC regulations
Securities and Exchange Commission regulation
Telephone numbers
Wholesalers
Online AccessGet full text

Cover

More Information
Summary:The Compliance Guide also sheds light on the meaning of management responsibility in the context of Item 2, specifying that it includes all individuals, regardless of their formal title, who manage franchise sales or operations to the extent that a prospective franchisee would rely on their expertise, formulation of policy, or control of the system in making an investment decision. [...] initial expenses tend to be specific to the outlet offered for sale and franchisors typically must, as a practical matter, open the books of such outlets to prospective purchasers, one must question the need for and utility of this disclosure.\n The company must also disclose the specific comprehensive body of accounting principles used to prepare the statements and explain material differences between the principles and United States GAAP. . . .
ISSN:8756-7962
2163-2154