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July 27, 2014 | Sandy Shoemaker, Alison McElroy, and Michael Daigle

Accounting Issues for Lawyers: Understanding the Franchisor's Financial Statements

The requirement under the Federal Trade Commission’s Rule (the “FTC Rule”) that franchisors must include in their Franchise Disclosure Documents (“FDDs”) historical financial statements reflecting the franchisor’s financial condition is fundamental, likely (hopefully) known by any lawyer practicing in the franchise arena. But many franchise lawyers – those representing franchisors and those representing franchisees – lack more than a basic understanding of the required financial statements and, as a result, lose opportunities to provide their franchisor and franchisee clients with critical advice and counsel. Read on »