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Franchisor
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Will the FTC Require Franchisors to Make Financial Performance Representations?

In late 2020, the Federal Trade Commission held a virtual public workshop.  The workshop addressed whether the utility of the FTC Franchise Rule (“Disclosure Requirements and Prohibitions Concerning Franchising,” 16 CFR Part 436) could be enhanced. The workshop was part of a systematic review of all FTC regulations and portends potential revisions to the FTC Franchise Rule. Parts Read More

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Making Money as a Franchisor: Charging Fees for Services

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. We also began discussing less-common ways a franchisor makes money.  These were: Charging Read More

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Making Money as a Franchisor: Sale of Products and Services to Franchisees

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. We also began discussing less-common ways a franchisor makes money.  The first of Read More

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Making Money as a Franchisor: Lease of a Turnkey Business

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. We also began discussing less-common ways a franchisor makes money.  The first of Read More

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Making Money as a Franchisor: Developing Franchisees’ Sites

This blog previously discussed the common ways a franchisor makes money.  As we noted, almost all franchisors charge the following fees: An initial franchise fee; A periodic (weekly or monthly) royalty; A development fee or territory fee; and A periodic advertising fee. There are, however, other sources of revenue.  Many of these can provide significant Read More

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RICHARD E. JOHNSON
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