Franchise Business Litigation and the Law
The purchase and sale of a franchise is regulated by the Federal Trade Commission (FTC). The required disclosure documents required by the FTC was earlier known as the UFOC. Due to new FTC rules, however, the name and requirements of the UFOC are changing. The new name for the disclosure document is the Franchise Disclosure Document (FDD).
It states in 16 CFR Subpart B 436.2:
"In connection with the offer or sale of a franchise to be located in the United States of America or its territories, unless the transaction is exempted under Subpart E of this part, it is an unfair or deceptive act or practice in violation of Section 5 of the Federal Trade Commission Act: (a) For any franchisor to fail to furnish a prospective franchisee with a copy of the franchisor's current disclosure document, as described in Subparts C and D of this part, at least 14 calendar days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed franchise sale. (b) For any franchisor to alter unilaterally and materially the terms and conditions of the basic franchise agreement or any related agreements attached to the disclosure document without furnishing the prospective franchisee with a copy of each revised agreement at least seven calendar-days before the prospective franchisee signs the revised agreement. Changes to an agreement that arise out of negotiations initiated by the prospective franchisee do not trigger this seven calendar-day period."
Focused and Aggressive Business and Commercial Litigation
The business litigation attorneys at our Austin firm focus on the litigation of disputes that occur between franchisors and franchisees. A lot 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 caught up in the litigation of a business dispute, our commercial and business litigation attorneys can help. Based in Austin, Texas, 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
- Business fraud
- Registration violations/disclosure violations
- Consumer fraud claims
- Breach of contract
- Franchise class action suits
Our franchise litigation attorneys have decades of legal experience and are pleased to assist clients throughout all phases of litigation, from pre-demand claims to negotiations, mediation and trial.
Working Hard to Meet Your Business Litigation Goals
We know that you want to find a solution to your legal concerns as quickly and affordably as possible. And we're here to help. We will be your strongest advocate at every stage.
Call 512-322-5367 or e-mail us to schedule a consultation. We will listen to your concerns and give you our honest opinion about your case.
Our office is located in downtown Austin in the historic Littlefield Building. We are open 8 to 5, Monday to Friday, with meetings at other times and locations available by appointment. For your convenience, we accept credit cards.
The Butler Firm, PLLC
106 East 6th Street
Suite 800
Austin, TX 78701
Telephone: 512-322-5367 | Fax: 888-356-3151
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