Andrew Bleiman, managing attorney of the Marks & Klein Illinois offices and co-founder of Northern Illinois Franchise Association (NIFA) with colleagues Jamie and Lauran Izaks, discussed the basics of franchising and the importance of Franchise Disclosure Document (FDD) guidelines in our recent August seminar. Sharing his expertise on the legal technicalities of franchising, Andrew delivered an informative seminar for the All Points team.
Working with franchisors and franchisees on matters such as preparation and review of franchise disclosure documents, franchise agreements, area development agreements and similar documents, Andrew was ready to answer the team’s questions on abiding by FDD guidelines and other legal issues.
As we learned in detail, the purpose of an FDD is to provide prospective franchisees with information about the franchisor, the franchise system and the agreements they will need to sign so that they can make an informed decision on their investment. Most essentially, it is used to sell franchises while abiding by federal law. Understanding these guidelines allows us to be more informed about issues that affect our clients and clarify topics we wished to explore deeper.
Andrew began his presentation by covering the history of the Federal Trade Commission Franchise Rule, which requires the use of an FDD, and state registration and disclosure laws. He then guided the All Points team through a majority of the 23 items present in an FDD, identifying several items that are critical to disclose. As we work to bring awareness of a franchise to potential franchisees through press placements, content marketing and social media, it is vital that our language, numbers and other information about the franchisor are consistent with that of the FDD put together by our clients and their attorneys.
Thank you to Andrew for taking the time to share this important information and answer all our questions.