Are you seeking franchisees to build your franchise brand?  Are you sending email blasts, drafting informational packets to send to persons inquiring about your franchise, advertising in magazines and other publications?  Are you aware of  the special advertising concerns for franchisors?  In addition to compiling with the the tradition truth in advertising laws, franchisors need to be careful about not making improper financial performance representations and making the necessary state advertising filing. 

Below is  an introduction of what an advertisement is and the necessary state filings that are required:

All advertisements and other materials used to promote the company’s franchises must be approved before their use in the following states:

•          California                    •          Indiana                       •          Maryland

•          Minnesota                   •          New York                    •          North Dakota

•          Rhode Island               •          South Dakota             •          Washington

 For purposes of state review of advertisements, an “advertisement” includes virtually any document or letter given or sent to a prospective franchisee before or during the sale of the franchise, including, but not limited to, any brochure, photograph, e-mail or letter sent or given to prospective franchisees; newspaper, magazine, radio or television ads; leaflets, photographs or brochures left in the company’s office; signs or pictures in the office directed at selling franchises; and even a recorded telephone message.

Advertisements in newspapers or other publications of general, regular and paid circulation which have had more than ⅔ of their circulation outside the state during the past 12 months, and radio or television programs originating outside the state, are NOT required to be submitted for pre-publication approval.  However, a newspaper or magazine article about the company that was originally published in another state or in a newspaper or magazine with more than ⅔ of its circulation outside the state, must be submitted for approval if you mail copies to prospective franchisees in a state that does require pre-publication approval.

 For more information about advertising and your other franchising needs, give us a call at 513-400-3895 or email us at mbgettins@gettinsnelsonlaw.com

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