The sale of a franchise is regulated by the Federal Trade Commission (FTC). The disclosure document required by the FTC had been known as the UFOC. However, new FTC rules contain important changes. The disclosure document is now called the Franchise Disclosure Document (FDD).
16 CFR Subpart B 436.2 provides that in connection with the offer or sale of a franchise in the United States franchisors are required to provide a copy of this form to a prospective franchisee at least 14 days before any agreements are signed or funds exchanged in connection with the franchise. Also, a franchisor is required to provide the prospective franchisee written notification of any changes made to the terms and conditions of the agreement a minimum of seven days prior to having the agreement signed.
Holman Law focuses on the litigation of disputes that occur between franchisors and franchisees. Some of these disputes involve allegations that a person or business selling a franchise did not properly disclose information that should have been disclosed pursuant to FTC regulations.
If you are a franchisor or franchisee involved in the litigation of a business dispute, Holman Law’s business and commercial litigation experience can help. Based in the Metro New York area, our firm handles a wide range of franchise litigation, including:
Trademark and copyright infringement
Offering sale of an unregistered franchise
Breach of a Franchise Agreement
Registration violations ⁄ disclosure violations
Consumer fraud claims
Holman Law has almost four decades of legal experience and is pleased to assist clients throughout all phases of litigation, from pre-demand claims to negotiations, mediation and trial.
Wrongful Termination of Franchisees or Distributors
Franchise or distribution agreements are cornerstones of many businesses, allowing companies to spread their products wide and giving small businesses an established brand to rely on. But when there is trouble between the two businesses, the deck is often stacked against the franchisee or distributor. Many of these smaller businesses have successfully challenged the termination of their agreements, but it takes a thorough reading of their contracts -- and smart, aggressive legal representation -- to succeed.
Not every termination of a franchise or distribution agreement is legally valid. Companies may not breach their contractual obligations and hold distributors or franchisors responsible for complying with their own. Contracts, or their provisions, may also be declared invalid if they constitute retaliation, false pretenses or violations of the laws of your state, including the New York Franchise Sales Act. Holman Law can act right away to stop a pending termination from going through. We can also hold companies legally responsible for the financial consequences of a wrongful termination, especially the loss of years of future profits.
Holman Law has almost four decades of experience representing companies involved in business disputes or breach of contract litigation, especially complex or high-stakes lawsuits. We handle cases in federal courts and state courts in New York and elsewhere. We also represent clients in alternative dispute resolution methods such as arbitration and mediation. If necessary, Holman Law will challenge contractual provisions forcing you into courts in other states or unfair arbitration agreements. Our past clients have included business structures from closely held private or family businesses to large corporations, in all types of businesses, particularly retailers, soft drink distributors, automotive dealerships products and services, and vending machines.
If you’re part of a distributor or franchisee and you believe your contract was illegally terminated, Holman Law wants to help. We offer free, confidential consultations to potential clients. To speak with us about your claim, please contact us by email or call us toll-free at (866) 204-1020 or (212) 481-1336.