Item 15: Obligation to Participate in the Actual Operation of the Franchise Business Item 15 of the amended Rule requires franchisors to disclose whether franchisees are required to participate …
READ MORE →The employer must review the employment application carefully. In order to determine whether all the questions asked are appropriate, consider whether the information requested is reasonably related …
READ MORE →Background of Minnesota Mechanic’s Lien Law In Minnesota a mechanic’s lien can be filed by a contractor or materialman to preserve their legal remedy for non-payment by a property owner. This legal …
READ MORE →Item 11: Franchisor’s Assistance, Advertising, Computer Systems, and Training Consistent with the UFOC Guidelines, Item 11 of the amended Rule requires the disclosure of the franchisor’s obligations …
READ MORE →Statutory Employees This post is part of a series of posts on common issues Minnesota employers face. Even if a worker is not an employee under common law rules, he or she may be considered an …
READ MORE →When an employee leaves to compete with you, you have a number of legal rights and options. In Minnesota those options now center on protecting your trade secrets and confidential information, …
READ MORE →Our office recently received a physical scam letter from Mrs. Tracy Gold. The fraudulent letter claims that Mrs. Tracy Gold was directed to contact our office in order to settle a loan owed to Mrs. …
READ MORE →Item 5: Initial Fees Consistent with the UFOC Guidelines, Item 5 of the amended Rule requires the disclosure of any initial fees and any conditions on their refundability. “Initial fees” means “all …
READ MORE →This post is part of a series of posts designed to help you acquire a loan for your small business. The following posts cover methods for public financing of your small business Local MN Programs for …
READ MORE →Item 3: Litigation Item 3 calls for the disclosure of certain lawsuits involving the franchisor and other entities associated with the franchisor – i.e., predecessors, parents, and affiliates – in …
READ MORE →Loan Packaging Before inquiring about debt financing, an entrepreneur should assess such things as: Do you actually need more capital or can you manage existing cash flow more efficiently? How do you …
READ MORE →Item 1: The Franchisor And Any Parents, Predecessors, And Affiliates Item 1 of the amended Rule requires franchisors to disclose background information on the franchisor and any parents, predecessors, …
READ MORE →I have heard from a number of attorneys that scam artists are targeting lawyers claiming to need legal help. Understanding these fraud patterns is an important part of law firm operations and risk …
READ MORE →At What Point in The Sales Process Must a Franchisor Furnish The Disclosure Document? The amended Rule provides that franchisors must furnish prospective franchisees with a disclosure document at …
READ MORE →Small Business Exemption From Rules Minn. Stat. § 14.127 provides a procedure for small businesses or small cities to claim exemption from certain state rules. Under the statute, an agency must …
READ MORE →Air Pollution Control Requirements Minnesota businesses must comply with MPCA rules to protect air quality. Some rules apply even though the business will not have air emissions requiring permits. …
READ MORE →State Disposal System Permits State disposal system permits are required for disposal of wastewater other than to surface waters, including large septic tank and drainfield systems and spray …
READ MORE →Large Franchise Investment Exemption The FTC Franchise Rule’s disclosure requirements do not apply to a franchise offer or sale when the franchisee’s initial investment totals at least …
READ MORE →Storage Tanks Tank owners are required to register their tanks with the MPCA. Owners of regulated underground storage tanks (USTs) and above ground storage tanks (ASTs) must report information such as …
READ MORE →Business Licenses And Permits In General The startup, operation or expansion of a business in Minnesota may involve securing one or more business, occupational or environmental licenses or permits. …
READ MORE →A company selling securities to residents of the state of Minnesota must comply with federal and state securities laws. State securities laws are collectively and individually referred to as “Blue Sky …
READ MORE →ITEM 17: THE FRANCHISE RELATIONSHIP This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this …
READ MORE →Introduction Here is a sample cover page of a franchise disclosure document. Franchise Disclosure Document Belmont Mufflers, Inc. A Minnesota Corporation 111 First Street Jackson, Minnesota 55000 …
READ MORE →Sample Item 19-1: Financial Performance Representation (Based on Actual Historical Performance Results) ITEM 19: FINANCIAL PERFORMANCE REPRESENTATION The FTC’s Franchise Rule permits a franchisor to …
READ MORE →Sample Item 21-1: Financial Statements ITEM 21: FINANCIAL STATEMENTS Attached to this disclosure document as Exhibit J are our audited, fiscal year end financials for 2005, 2006, and 2007. Attached to …
READ MORE →ITEM 13: TRADEMARKS We grant you the right to operate a shop under the name “Belmont Muffler Shop.” You may also use our other current or future trademarks to operate your shop. By “trademark,” we …
READ MORE →Table No. 1 – Systemwide Outlet Summary Table No. 1 of Item 20 presents the total number of all outlets nationwide – both company owned and franchised – operating at the beginning and at the end of …
READ MORE →The “Required Payment” Element The last of the three definitional elements of a franchise covered by the amended Rule is that purchasers of the business arrangement must be required to pay to the …
READ MORE →Professional Entities The Minnesota Professional Firms Act, Minnesota Statutes, Chapter 319B, was enacted in 1997 and authorizes practitioners of certain licensed professions to elect to be …
READ MORE →The “Significant Control or Assistance” Element The amended Rule covers business arrangements where the franchisor “will exert or has the authority to exert a significant degree of control over the …
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