Regulators Address Disclosure Issues Raised by Amended FTC Rule

At the ABA Forum, Dale Cantone of the Maryland Office of the Attorney General, and Craig Tregillus of the Federal Trade Commission, served as part of a panel discussion entitled "Advanced Disclosure Issues Under the Amended FTC Rule." The panel focused on identifying problematic disclosure and compliance issues that remain unclear under the Amended FTC Rule, and discussed the NASAA, state and FTC responses to such issues. The following is a sample of some of the issues touched upon by the panel that franchisors should keep in mind during the disclosure process:

• 7 Day Delivery Requirement. The panel pointed out an important issue that arises after a franchisor initially provides disclosure to a potential franchisee. If the franchisor subsequently unilaterally and materially alters the terms or conditions of its form franchise agreement or related agreements, the franchisor is required to redisclose to the potential franchisee seven calendar days prior to execution