Our Practices

                                                                                                                 

Franchise Advertising Regulatory Compliance

Attracting new franchisees in a competitive environment requires a strong marketing strategy that utilizes several different methods of advertising to generate franchisee leads. As franchisors look to advertise to prospective franchisees, they must be mindful of general consumer laws as well as relevant state advertising laws and regulations.

Several states with franchise-specific laws—California, Maryland, Minnesota, New York, North Dakota, Rhode Island, and Washington included— regulate the advertisement of franchise sales. These states also impose mandatory filing requirements of proposed advertisements and promotional materials in connection with an offer to sell a franchise. To ensure compliance with state laws, franchise examiners may review advertising materials for restricted content.

Franchisors are prohibited from making claims portraying the franchise as a safe investment or implying that state registration of the franchise means that the franchise has state approval. Any claim or statement made in an advertisement must be consistent with what is outlined in the Franchise Disclosure Document (FDD). Because of the sheer number of laws and regulations surrounding franchise advertising, it is important to seek the help of an experienced franchise attorney.

Our attorneys have a solid background in regulatory compliance as it relates to franchise advertising. We regularly review franchisors’ advertising efforts for compliance with various state laws, including advertising in social media, web pages, print ads in magazines and newspapers, sales literature, television advertisements, and other marketing materials. We also have expertise in advertising franchise sales on social media and the application of various state franchise advertising regulations to that advertising. We have effective strategies for working with state franchise examiners, so if a problem arises, we can work to quickly resolve the issue efficiently and effectively. Franchisors of all sizes choose FSBR to ensure that their marketing campaigns are compliant with applicable advertising laws and regulations.

“Franchise Advertising in the Digital Age: Regulators Need to Contemporaneously Address Advancing Advertising Technologies or Step Aside,” Franchise Law Journal, Vol. 40, No. 2, 2020.

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