Peaberry: Is the FDD Enough?

For just over three decades, franchisors have been subject to regulations governing the information they must disclose to prospective franchisees. Franchisors' disclosures have been guided by the Federal Trade Commission's Franchise Rule and the North American Securities Administrators Association's Uniform Franchise Offering Circular Guidelines.

Writing in The Franchise Lawyer about the implications of a recent Colorado Appeals Court decision, Jeffrey Brimer and Sarah Mastalir Kellner consider whether a franchisor whose Franchise Disclosure Document (FDD) complies with the Franchise Disclosure Regulations can still be subject to liability for failure to disclose additional information.