Navigating Disclosure Obligations

Navigating disclosure obligations during an M&A transaction in the franchise industry is a complex, yet crucial, part of the process.

Franchisors are required to provide prospective franchisees with all material information that could influence their decision to invest, including details about an impending sale. However, determining when to disclose this information can be legally sensitive.

Regulatory examiners often prefer early disclosure, sometimes as soon as a non-binding letter of intent is signed. However, the timing depends on the specific circumstances and legal guidance.

At Einbinder & Dunn, we help franchisors manage these disclosure obligations to ensure transparency while minimizing risks: https://lnkd.in/e5QPHC3z