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To Disclose or Not to Disclose?
Financial performance representations (“FPRs”), formerly referred to as “earnings claims,” have generated extensive discussion since franchise sales first became regulated in 1970. FPRs are, in plain English, projections of how a franchise might perform financially or historical financial performances. Most commentators on this subject note that such financial information is likely the first item a prospective franchisee will ask for in its discussions with a franchisor. However, federal and state government officials have steadfastly refused to make disclosure of this information mandatory. A franchisor has the right not to disclose any financial performance information in its negotiations with prospective franchisees. However, if a franchisor does elect to give this information to prospects, that information must be included in the franchise disclosure document (“FDD”) the franchisor is required to give to prospective franchisees, and cannot be false, misleading, or omit any information necessary to make it not misleading.
Around 1970, when franchise regulation was first developing in the United States, very few franchisors, perhaps only 10% to 20%, made any financial performance representations to their prospects. They declined to do so for various reasons: the rules were very strict as to what could be disclosed; franchisors did not always have access to the data necessary to create an FPR; franchisors feared suits from prospective franchisees; and, in some franchise systems, the FPR would not have shown prospects a hopeful picture. The rules governing FPRs have been simplified over the years, but, still, only around 40% of franchisors elect to create FPRs.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
CLE Shouldn't Be the Only Mandatory Training for Attorneys
Each stage of an attorney's career offers opportunities for a curriculum that addresses both the individual's and the firm's need to drive success.