Many franchisors, as required by the Federal Trade Commission (FTC) Franchise Rule and applicable state franchise laws, updated their Franchise Disclosure Document (FDD) in the spring of 2020. Those FDDs included information from the franchisor’s previous fiscal year, which, in most cases, ended on Dec. 31, 2019. Many franchisors included financial performance representations (FPRs) in Item 19 of their FDD based on revenue data for franchisee and/or company-owned units from fiscal year 2019, which predated the COVID-19 pandemic. Read more…
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