FTC CONVERSION PROGRAM.  The new Federal Trade Commission ("FTC") Rule on Franchising (the "New FTC RULE"), approved on January 22, 2007, went into effect on a voluntary basis on July 1, 2007 and becomes mandatory on July 1, 2008.  While the New FTC Rule is modeled on the UFOC Guidelines, the Franchise Disclosure Document, as it is now called, included expanded parent company disclosure; disclosure of franchisor initiated litigation, and substantially revised Item 20 charts reflecting additional historical information relating to each franchise unit.

In an effort to induce you to commit to the conversion process early and to allow us to more effectively engage our resources, we are offering promotional pricing for the conversion.  Most conversions have ranged in cost between $2,500 and $5,000 depending on the complexity of the franchisor's corporate structure with respect to parents and cross-managers, the number of brands, types of offer, number of units and earnings claims (now known as Financial Performance Representations).

We have prepared an internal firm publication summarizing the significant changes to the FTC Rule, which can be found under the News section of this website.

FOCUS REVIEW.  Stay on course with our comprehensive FOCUS Review.  For only $5,000, we review your existing single unit franchise agreement to confirm the presence of certain critical or recommended contract terms and your current disclosure document to ensure compliance with all applicable state and federal regulations.  We then compare the economic and business terms of your offer to other key competitors that you help us identify.  We estimate our fees to implement the changes you authorize in our subsequent discussions, along with those necessary to comply with the New FTC Rule.