Structuring Licensing Agreements to Avoid Inadvertent Franchise Creation
Crafting Contracts to Prevent FTC Fines, Liability and Significant Costs for Misclassification
Recording of a 90-minute CLE webinar with Q&A
This seminar will discuss the pitfalls of inadverent franchise creation and provide practical and experienced perspectives on drafting licensing agreements to prevent the business from being re-classified as a franchise.
- Compliance with Federal and State Franchise Laws
- FTC franchise regulations and amended Franchise Rule
- State franchise laws
- Franchise Disclosure Document (FDD) under FTC and state laws
- Consequences of noncompliance with franchise laws
- FTC and state enforcement mechanisms, fines and remedies
- Cost of “after the fact” compliance with franchise laws
- Potential attorney malpractice
- Definition of Franchise under FTC Rule
- Three prong analysis
- Variance with state law definitions
- Crafting License/Distribution Agreements to Avoid Franchise Laws
- Trademark use
- Control over licensee
- Franchise fee
The panel reviewed these and other key questions:
- What are the legal definitions of a license vs. a franchise -- and what factors are determinative in classifying a business arrangement as one or the other?
- What other business opportunity laws regulate businesses that do not fall within the franchise laws?
- What should practitioners avoid when drafting license agreements and structuring nonfranchise business deals so as to avoid the "hidden" or "illegal" franchise trap?
- What are the disclosure documentation requirements of federal and state franchise laws and the liability for noncompliance with these laws?
Davis Wright Tremaine
She is a nationally recognized franchise and distribution attorney with 30 years experience representing franchisors,... | Read More
She is a nationally recognized franchise and distribution attorney with 30 years experience representing franchisors, manufacturers, licensors and franchisees in expansion and strategic development.Close
Phillip Leslie Wharton
Epstein Becker Green
He is a nationally recognized franchise attorney who has held leadership roles in national franchise and staffing... | Read More
He is a nationally recognized franchise attorney who has held leadership roles in national franchise and staffing organizations. Additionally, he focuses on M&A's and staffing industry law. He is a frequent speaker on franchise-related topics, testified before a Congressional Subcommittee on the FTC Franchise Rule, and has chaired subcommittees of the International Franchise Association.Close
Craig R. Tractenberg
He is a member of the firm's business litigation and bankruptcy teams. His representative matters include acquisitions... | Read More
He is a member of the firm's business litigation and bankruptcy teams. His representative matters include acquisitions and dispositions of franchise systems and restaurants, franchise encroachment, and termination and non-renewal litigation.Close
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