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Craig Tractenberg of Fox Rothschild. Craig Tractenberg of Fox Rothschild.

The Federal Trade Commission’s Rule of 1979 governs the offer and sale of franchises. The intent of the rule is to require a franchisor to give every prospective franchise buyer a uniform written disclosure containing the essential information about the franchise offering. This written document is called a franchise disclosure statement or an FDD for short. What if the information required by the FTC rule is inaccurate or incomplete? Or perhaps it was important information to the purchaser, but not required to be disclosed under the rule, and may have also been wildly inaccurate or misleading. When is such information actionable?

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