Yes. No. Maybe. If franchisor owned outlet data can be used for franchise financial performance representation, it depends on:
- If there are franchise outlets
- What can kind of representations are being made, and
- If the franchisor owned outlet data is used alone are with franchise outlets
The NASAA’s [North American Securities Administrator Association] Franchise and Business Opportunity Project Group [Franchise Project Group] has released, for internal and public comment, a Proposed Franchise Commentary on Financial Performance Representations [FPR Commentary].
Discover 10 Franchise FPR Dos and Don’ts, click here or visit http://wp.me/p4bshS-17i
In the FPR Commentary, clarity is provided about when and what franchise financial performance representations [FPR] can be made using company [franchisor] owned outlets.
To better understand the ifs and whens and okays, we made a symmetric.
Give us a call to review your exiting financial performance representation [FPR] or get help drafting a new FPR: 513-400-3895 or email at mbgettins@gettinslaw.com.