Latest from Forward Franchising

Today, the Federal Trade Commission (the “Commission”) announced an amendment to its “Disclosure Requirements and Prohibitions Concerning Franchising” (16 C.F.R. Part 436) (the “Franchise Rule”) revising the monetary limits for three of the listed exemptions. Under these exemptions, a company that would otherwise qualify as a “franchisor” as defined under the Franchise Rule is excused

On April 8, 2020, the Indiana Secretary of State, Securities Division, announced that it would extend the registration periods for franchisors that are currently set to expire between March 16, 2020 and May 31, 2020. The text of the Securities Commissioner’s Administrative Order No. 20-0012 reads as follows:

The Indiana Secretary of State, Securities Division

The Financial Accounting Standards Board (“FASB”) unanimously voted today to propose delaying the effective date for its Accounting Standards Codification® Topic 606 (“ASC 606”), Revenue From Contracts With Customers, for franchisors that are not public business entities. As I reported in October 2018, franchisors have been required to implement this changed revenue recognition standard

The Washington Department of Financial Institutions Securities Division (the “Securities Division”), which manages franchise registration and renewal filings for the state, recently updated its filing requirements for franchisors. The state’s announcement reads as follows:

Updated Washington Franchise Agreement Addendum.  The Securities Division has provided a sample Washington Franchise Agreement Addendum for many years.  We have