Franchise Disclosure: The Legal Foundation of Your Franchise

Episode Summary

In this episode of Franchising Your Business, host Kevin Rosenquist welcomes franchise attorney Tim Pickwell for an in-depth discussion on franchise disclosure laws—the legal foundation of franchising. Tim explains the critical role of the Franchise Disclosure Document (FDD), its evolution, and why it’s a vital tool for protecting both franchisors and franchisees. He also covers the impact of federal and state franchise laws, key disclosure requirements, and why attempting to franchise without legal guidance is a risky move.

Timestamps

• 00:00 – Introduction to the episode and guest, Tim Pickwell
• 00:42 – What is a Franchise Disclosure Document (FDD) and why is it required?
• 02:07 – The history of franchise disclosure laws and how they developed
• 06:46 – How the FDD changed franchise disclosure and protections for franchisees
• 09:36 – The role of the North American Securities Administrators Association (NASAA) in shaping franchise laws
• 11:28 – Key sections of the FDD and their importance
• 13:58 – Why franchisors should never attempt to draft an FDD without legal assistance
• 14:46 – Closing thoughts and where to learn more

About the Show

Franchising Your Business is a podcast dedicated to helping entrepreneurs and business owners navigate the complexities of franchising. Each episode features expert insights on legal requirements, best practices, and strategies for building a successful franchise system.