Understanding Franchise Compliance Matters
Operating a national franchise program requires a significant amount of investment and attention to legal obligations and duties. The franchise attorneys of Huck Bouma provide extensive training and education to franchisors, subfranchisors and their franchise sellers nationwide on franchise law compliance.
Commitment to providing franchisors and subfranchisors with the education and tools they need to protect their investment and prevent violations of federal and state franchise laws and regulations is what the Franchise Law Group of Huck Bouma is known for.
Offering Training To Avoid Compliance Concerns
The franchisor and subfranchisor clients of the Franchise Law Practice Group of Huck Bouma frequently require assistance with training their management, franchise sellers, subfranchisors/master franchisees, area developers, franchise brokers, and other individuals involved in the franchise sales process and who could potentially create liability for franchisors if they don’t have an understanding of the federal and state franchise laws that apply to selling franchises. These tools are necessary to help avoid liability and to have a strong franchise program.
The civil and criminal penalties associated with a violation can be serious, including unenforceability of franchise agreements, suspension of franchise registrations, disclosure of violations in the Franchise Disclosure Document, fines, or even imprisonment. Training can provide you with the information you need to successfully operate a franchise and covers many aspects, including:
- Amended FTC Franchise Rule
- State franchise laws
- Franchise law violations
- Avoiding fraud and misrepresentation
- Pre-sale discussions and negotiations
- Financial performance representations
- Regulations on franchise advertising
- Franchise relationship laws
- Registration and disclosure
The franchise law attorneys at Huck Bouma provide interactive training sessions and manuals on preventing franchise law violations. By preventing franchise law violations, you can avoid jeopardizing your franchise registrations, protect the enforceability of your franchise agreements, and limit legal claims by franchisees or actions by franchise regulators.
Franchisors Can Unintentionally Violate The Law
Franchisors and Franchise sellers can unintentionally violate the franchise law in many ways such as:
- Not complying fully with disclosure requirements
- Making unauthorized financial performance representations
- Providing inconsistent information to buyers
- Website content or advertising information being inconsistent with what is in the Franchise Disclosure Documents or franchise agreement
- Failing to comply with delivery requirements and waiting periods
The potential errors are numerous and can be difficult to avoid without proper training.
Addressing Non-Compliance Claims With The Government
If someone has reported your franchise company for misconduct or non-compliance with the law, federal and/or state franchise regulators may investigate that claim. If you have received a government inquiry, contact Huck Bouma franchise attorneys immediately. An experienced franchise attorney can investigate the facts related to the alleged misconduct or non-compliance and prepare a response to the government on your behalf.
Keep Your Franchise Disclosure Document Clean
Any adverse consequences against your franchise must be disclosed in your Franchise Disclosure Document for at least 10 years. Do not let a government inquiry or legal actions by franchisees impede the growth of your company. Contact Huck Bouma to ensure your franchise remains in compliance with the law.