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Should You Make an Earnings Claim?
If there is one question in the minds and on the lips of potential franchisees, it is “How much money can I make with this concept?” Franchisors may answer this question, of course, but with great care and consideration as to what, how, and when they answer it.
Under both the UFOC guidelines and the FTC Rule, a franchisor is not required to make any representations concerning the actual, average, projected, or forecasted sales, profits, or earnings likely to be realized by operation of the franchise. If a franchisor does make such representations, it must do so in strict compliance with the “earnings claim” requirements of the FTC Rule or Item 19 of the UFOC Guidelines. In short, an “earnings claim” is any information given at the direction of the franchisor to a prospective franchisee from which a specific level or range of actual or potential sales, costs, income, or profit from franchised or non-franchised units may easily be ascertained. Currently, approximately only 25% of franchisors make earnings claims, but this is not uniform across all types of franchisors. Some industries have substantially greater earnings claims rates.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.