DDRX » Topics » Government Regulation

This excerpt taken from the DDRX 10-K filed Oct 8, 2008.

Government Regulation

In addition to the laws and regulations relating to the food service industry, we are subject to Federal Trade Commission (“FTC”) regulation and state laws that regulate the offer and sale of franchises as well as the franchise relationship. The FTC’s Trade Regulation Rule relating to Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures generally requires us to give prospective franchisees a franchise offering circular containing information prescribed by the rule. A number of states have laws that regulate the offer and sale of franchises and the franchisor-franchisee relationship. These laws generally require registration of the franchise offering with state authorities before making offers or sales and regulate the franchise relationship by, for example:

 

   

prohibiting interference with the right of free association among franchisees;

 

   

prohibiting discrimination in fees and charges;

 

   

regulating the termination of the relationship by requiring “good cause” to exist as a basis for the termination, advance notice to the franchisee of the termination, and an opportunity to cure a default;

 

   

requiring repurchase of inventories in some circumstances;

 

   

restricting non-renewal by the franchisor;

 

   

limiting restrictions on transfers or inheritance of the franchisee’s interests; and

 

   

regulating placement of competing units that might adversely affect the franchisee’s results.

Failure to comply with applicable franchise laws may adversely affect us. Any changes to the FTC’s rules, or state franchise laws, or future court or administrative decisions, could affect our franchise business. There are also extensive federal, state and local government regulations relating to the development and operation of food service outlets, including laws and regulations relating to: building and seating requirements; the preparation and sale of food; cleanliness; safety in the workplace; and accommodations for the disabled. Our relationship with our employees is also subject to regulation, such as: minimum wage requirements; anti-discrimination laws; overtime and working conditions; and citizenship requirements.

 

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Table of Contents
This excerpt taken from the DDRX 10-K filed Sep 25, 2007.

Government Regulation

In addition to the laws and regulations relating to the food service industry, we are subject to Federal Trade Commission (“FTC”) regulation and state laws that regulate the offer and sale of franchises as well as the franchise relationship. The FTC’s Trade Regulation Rule relating to Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures generally requires us to give prospective franchisees a franchise offering circular containing information prescribed by the rule. A number of states have laws that regulate the offer and sale of franchises and the franchisor-franchisee relationship. These laws generally require registration of the franchise offering with state authorities before making offers or sales and regulate the franchise relationship by, for example:

 

   

prohibiting interference with the right of free association among franchisees;

 

   

prohibiting discrimination in fees and charges;

 

   

regulating the termination of the relationship by requiring “good cause” to exist as a basis for the termination, advance notice to the franchisee of the termination, and an opportunity to cure a default;

 

   

requiring repurchase of inventories in some circumstances;

 

   

restricting non-renewal by the franchisor;

 

   

limiting restrictions on transfers or inheritance of the franchisee’s interests; and

 

   

regulating placement of competing units that might adversely affect the franchisee’s results.

Failure to comply with applicable franchise laws may adversely affect us. Any changes to the FTC’s rules, or state franchise laws, or future court or administrative decisions, could affect our franchise business. There are also extensive federal, state and local government regulations relating to the development and operation of food service outlets, including laws and regulations relating to: building and seating requirements; the preparation and sale of food; cleanliness; safety in the workplace; and accommodations for the disabled. Our relationship with our employees is also subject to regulation, such as: minimum wage requirements; anti-discrimination laws; overtime and working conditions; and citizenship requirements.

This excerpt taken from the DDRX 10-K filed Sep 26, 2006.

Government Regulation

 

In addition to the laws and regulations relating to the food service industry, we are subject to Federal Trade Commission (“FTC”) regulation and state laws that regulate the offer and sale of franchises as well as the franchise relationship. The FTC’s Trade Regulation Rule relating to Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures generally requires us to give prospective franchisees a franchise offering circular containing information prescribed by the rule. A number of states have laws that regulate the offer and sale of franchises and the franchisor-franchisee relationship. These laws generally require registration of the franchise offering with state authorities before making offers or sales and regulate the franchise relationship by, for example:

 

    prohibiting interference with the right of free association among franchisees;

 

    prohibiting discrimination in fees and charges;

 

    regulating the termination of the relationship by requiring “good cause” to exist as a basis for the termination, advance notice to the franchisee of the termination, and an opportunity to cure a default;

 

    requiring repurchase of inventories in some circumstances;

 

    restricting non-renewal by the franchisor;

 

    limiting restrictions on transfers or inheritance of the franchisee’s interests; and

 

    regulating placement of competing units that might adversely affect the franchisee’s results.

 

Failure to comply with applicable franchise laws may adversely affect us. Any changes to the FTC’s rules, or state franchise laws, or future court or administrative decisions, could affect our franchise business. There are also extensive federal, state and local government regulations relating to the development and operation of food service outlets, including laws and regulations relating to: building and seating requirements; the preparation and sale of food; cleanliness; safety in the workplace; and accommodations for the disabled. Our relationship with our employees is also subject to regulation, such as: minimum wage requirements; anti-discrimination laws; overtime and working conditions; and citizenship requirements.

 

12


Table of Contents
This excerpt taken from the DDRX 10-K filed Sep 29, 2005.

Government Regulation

 

In addition to the laws and regulations relating to the food service industry, we are subject to Federal Trade Commission (“FTC”) regulation and state laws that regulate the offer and sale of franchises as well as the franchise relationship. The FTC’s Trade Regulation Rule relating to Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures generally requires us to give prospective franchisees a franchise offering circular containing information prescribed by the rule. A number of states have laws that regulate the offer and sale of franchises and the franchisor-franchisee relationship. These laws generally require registration of the franchise offering with state authorities before making offers or sales and regulate the franchise relationship by, for example:

 

    prohibiting interference with the right of free association among franchisees;

 

    prohibiting discrimination in fees and charges;

 

11


Table of Contents
    regulating the termination of the relationship by requiring “good cause” to exist as a basis for the termination, advance notice to the franchisee of the termination, and an opportunity to cure a default;

 

    requiring repurchase of inventories in some circumstances;

 

    restricting non-renewal by the franchisor;

 

    limiting restrictions on transfers or inheritance of the franchisee’s interests; and

 

    regulating placement of competing units that might adversely affect the franchisee’s results.

 

Failure to comply with applicable franchise laws may adversely affect us. Any changes to the FTC’s rules, or state franchise laws, or future court or administrative decisions, could affect our franchise business. There are also extensive federal, state and local government regulations relating to the development and operation of food service outlets, including laws and regulations relating to: building and seating requirements; the preparation and sale of food; cleanliness; safety in the workplace; and accommodations for the disabled. Our relationship with our employees is also subject to regulation, such as: minimum wage requirements; anti-discrimination laws; overtime and working conditions; and citizenship requirements.

 

This excerpt taken from the DDRX 10-K filed Sep 27, 2005.

Government Regulation

 

In addition to the laws and regulations relating to the food service industry, we are subject to Federal Trade Commission (“FTC”) regulation and state laws that regulate the offer and sale of franchises as well as the franchise relationship. The FTC’s Trade Regulation Rule relating to Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures generally requires us to give prospective franchisees a franchise offering circular containing information prescribed by the rule. A number of states have laws that regulate the offer and sale of franchises and the franchisor-franchisee relationship. These laws generally require registration of the franchise offering with state authorities before making offers or sales and regulate the franchise relationship by, for example:

 

    prohibiting interference with the right of free association among franchisees;

 

    prohibiting discrimination in fees and charges;

 

    regulating the termination of the relationship by requiring “good cause” to exist as a basis for the termination, advance notice to the franchisee of the termination, and an opportunity to cure a default;

 

    requiring repurchase of inventories in some circumstances;

 

    restricting non-renewal by the franchisor;

 

    limiting restrictions on transfers or inheritance of the franchisee’s interests; and

 

    regulating placement of competing units that might adversely affect the franchisee’s results.

 

Failure to comply with applicable franchise laws may adversely affect us. Any changes to the FTC’s rules, or state franchise laws, or future court or administrative decisions, could affect our franchise business. There are also extensive federal, state and local government regulations relating to the development and operation of food service outlets, including laws and regulations relating to: building and seating requirements; the preparation and sale of food; cleanliness; safety in the workplace; and accommodations for the disabled. Our relationship with our employees is also subject to regulation, such as: minimum wage requirements; anti-discrimination laws; overtime and working conditions; and citizenship requirements.

 

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