Russell and Catherine Dalbey – who allegedly defrauded consumers with promises of making big bucks by brokering seller-financed promissory notes – have settled with the Federal Trade Commission and the Colorado Attorney General.
Applicability of the Franchise Rule to vending machine manufacturers and independent marketing companies. An exhaustive discussion of the coverage issues arising in the sale of business opportunity ventures.
Compliance obligation of franchisors to include, in required disclosures about contractual provisions regarding termination of the franchise, information about actual policies and practices of the franchisor. Discusses obligation to disclose such policies as permitting franchisees to...
Applicability of the Franchise Rule to a hotel management arrangement. Discusses the "significant assistance" coverage element.
Compliance obligation of franchisor and area sub-franchisor to prepare annual update of joint disclosure statement within 90 days of the close of different fiscal years.
Applicability of the Franchise Rule to a sub-agency licensing arrangement for cellular phone services. Discusses the "required payment" coverage element and the "minimum investment" exclusion from the Rule's disclosure obligation.
Applicability of the Franchise Rule to a turn-key dry cleaning franchise. Discusses "significant assistance" coverage element.
Adequacy of predecessor company's unaudited financial statements to comply with required disclosure of the financial statements of a newly formed franchisor, and to provide substantiation for earnings claims by the new franchisor.
Applicability of the Franchise Rule to a not-for-profit education program. Discusses the lack of a "continuing commercial relationship."
Applicability of the Franchise Rule to a home-care services sub-contracting arrangement. Discusses "significant control or assistance" and "required payment" coverage elements, and "fractional franchise" exemption.
Applicability of the Franchise Rule to computer software distributorship enabling health care providers to order medical and office supplies. Discusses applicability of the Rule to "distributorships" and the "significant control or assistance" coverage element.
Inapplicability of the Franchise Rule retroactively where the parties anticipated at the time of the purchase that the Rule would not apply because the only required payments were deferred until at least six months after the business opened. Concludes that the result does not change...