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This excerpt taken from the WYN 10-K filed Feb 27, 2009. Regulations
Applicable to the Lodging Business
Sale of Franchises. The FTC, various state laws
and regulations and the laws of jurisdictions outside the United
States regulate the offer and sale of franchises. The FTC
requires that franchisors make extensive written disclosure in a
prescribed format to prospective franchisees but does not
require registration. The FTC recently enacted new franchise
regulations (the “FTC Rule”) that will affect sales
practices and procedures and the content of disclosure documents
that we use to sell franchises in the United States. The FTC
rule took effect on a mandatory basis on July 1, 2008. The
state laws that affect our franchise business regulate the offer
and sale of franchises, the termination, renewal and transfer of
franchise agreements, and the provision of loans to franchisees
as part of the sales of franchises. Currently, 14 states
have laws that require registration in connection with offers
and sales of franchises. In addition, 21 states currently
have “franchise relationship” laws that limit the
ability of franchisors to terminate franchise agreements or to
withhold consent to the renewal or transfer of the agreements.
California regulates the provision of loans to franchisees as
part of the sales of the franchises but we are currently exempt
from such law. The laws of jurisdictions outside the United
States regulate pre-sale disclosure and the commencement of
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franchising. Multiple Canadian provinces and a number of foreign
jurisdictions have adopted general franchises and pre-sale
disclosure regulations.
This excerpt taken from the WYN 10-K filed Feb 29, 2008. Regulations
Applicable to the Lodging Business
Our lodging business is subject to, among others, laws,
regulations and policies that affect the sale of franchises,
access for persons with disabilities and immigration, as
described below:
Sale of Franchises. The FTC, various state laws
and regulations and the laws of jurisdictions outside the United
States regulate the offer and sale of franchises. The FTC
requires that franchisors make extensive written disclosure in a
prescribed format to prospective franchisees but does not
require registration. The FTC recently approved new franchise
regulations (the “FTC Rule”) that will affect sales
practices and procedures and the content of disclosure documents
that we use to sell franchises in the United States. The new FTC
Rule became effective as of July 1, 2007 but franchisors
may use their current FDD formats for one year from the
effective date. Accordingly, the FTC rule takes effect on a
mandatory basis on July 1, 2008. The state laws that affect
our franchise business regulate the offer and sale of
franchises, the termination, renewal and transfer of franchise
agreements, and the provision of loans to franchisees as part of
the sales of franchises. Currently, 14 states have laws
that require registration in connection with offers and sales of
franchises. In addition, 21 states currently have
“franchise relationship” laws that limit the ability
of franchisors to terminate franchise agreements or to withhold
consent to the renewal or transfer of the agreements. California
regulates the provision of loans to franchisees as part of the
sales of the franchises but we are currently exempt from such
law. The laws of jurisdictions outside the United States
regulate pre-sale disclosure and the commencement of
franchising. Three Canadian provinces and a number of foreign
jurisdictions have adopted general franchises and pre-sale
disclosure regulations.
Persons with Disabilities. The American with
Disabilities Act, or ADA, prohibits places of public
accommodation, such as lodging and restaurant facilities, from
discriminating against an individual on the basis of disability
as defined in the Act. The U.S. Department of Justice
published “ADA Standards for Accessible Design” and
“ADA Accessibility Guidelines for Buildings and
Facilities,” collectively referred to as “ADAAG,”
that, among other things, prescribe a specified number of
handicapped accessible rooms, assistive devices for hearing,
speech and visually impaired persons, and general standards of
design applicable to all areas of facilities subject to the law.
The ADAAG specifies the minimum room design and layout criteria
for handicapped accessible rooms. Any newly
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constructed facility (given a certificate of occupancy after
January 26, 1993) must comply with ADAAG and be
“readily accessible” to and useable by persons with
disabilities. Owners, lessors, lessees and operators of public
accommodations and their contractors are responsible for ADA and
ADAAG compliance. States may impose additional laws that address
accommodations and services for individuals with disabilities.
This excerpt taken from the WYN 10-K filed Mar 7, 2007. Regulations
Applicable to the Lodging Business
Our lodging business is subject to, among others, laws,
regulations and policies that affect the sale of franchises and
access for persons with disabilities, as described below:
Sale of Franchises. The FTC, various state
laws and regulations and the laws of jurisdictions outside the
United States regulate the offer and sale of franchises.
The FTC requires that franchisors make extensive written
disclosure in a prescribed format to prospective franchisees but
does not require registration. The FTC recently approved new
franchise regulations (the “FTC Rule”) that will
affect sales practices and procedures and the content of
disclosure documents that we use to sell franchises in the
United States. The new FTC Rule will become effective
as of July 1, 2007 but franchisors may use their current
UFOC formats for one year from the effective date. We believe
that the new FTC Rule will have no material adverse impact
on the offer and sale of our hotel franchises. The state laws
that affect our franchise business regulate the offer and sale
of franchises, the termination, renewal and transfer of
franchise agreements, and the provision of loans to franchisees
as part of the sales of franchises. Currently, 19 states
have laws that require registration or disclosure in connection
with offers and sales of franchises. In addition, 20 states
currently have “franchise relationship” laws that
limit the ability of franchisors to terminate franchise
agreements or to withhold consent to the renewal or transfer of
the agreements. California regulates the provision of loans to
franchisees as part of the sales of the franchises but we are
currently exempt from such law. The laws of jurisdictions
outside the United States regulate pre-sale disclosure and
the commencement of franchising. Three Canadian provinces and a
number of foreign jurisdictions have adopted pre-sale disclosure
regulations. China has enacted regulations that, among other
things, require an organization to operate properties in at
least two locations in the area where the organization wants to
franchise brands before China will permit the organization to
commence acting as a franchisor. We have received legal advice
that such regulations do not prevent us from continuing to
franchise brands that we had franchised in China before the
effective date of the regulations and any direct franchises will
be established in accordance with applicable law.
Persons with Disabilities. The Americans with
Disabilities Act, or ADA, requires public accommodations, such
as lodging and restaurant facilities, to (i) offer
facilities without discriminating against persons with
disabilities, (ii) offer auxiliary aids and services to
persons with hearing, vision or speech disabilities who would
benefit from such services without fundamentally altering the
nature of the goods or services offered and (iii) remove
barriers to mobility or communication to the extent readily
achievable. The U.S. Department of Justice published
“Standards for Accessible Design” and
“Accessibility Guidelines,” collectively referred to
as ADAAG, that, among other things, prescribe a specified number
of handicapped accessible rooms, assistive devices for hearing,
speech and visually impaired persons, and general standards of
design applicable to all areas of facilities subject to the law,
including
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hotels. The ADAAG specifies the minimum room design and layout
criteria for handicapped accessible rooms. Any newly constructed
facility (first occupied after January 26, 1993) must
comply with ADAAG and be readily accessible to and useable by
persons with disabilities. The owner of each facility and its
contractors are responsible for ADA and ADAAG compliance.
This excerpt taken from the WYN 8-K filed Jul 19, 2006. Regulations Applicable to the Lodging Business Our lodging business is subject to, among others, laws, regulations and policies that affect the sale of franchises and access for persons with disabilities, as described below: Sale of Franchises. The FTC, various state laws and regulations and the laws of jurisdictions outside the United States regulate the offer and sale of franchises. The FTC requires that franchisors make extensive written disclosure in a prescribed format to prospective franchisees but does not require registration. The FTC has proposed changes to its franchise regulations that will affect sales practices and procedures and the content of disclosure documents that we use to sell franchises in the United States. The FTC has not yet released the final rule or announced its effective date. We believe that the proposed FTC changes to the franchise regulations will have no material adverse impact on the offer and sale of our hotel franchises. The state laws that affect our franchise business regulate the offer and sale of franchises, the termination, renewal and transfer of franchise agreements, and the provision of loans to franchisees as part of the sales of franchises. Currently, 19 states have laws that require registration or disclosure in connection with offers and sales of franchises. In addition, 20 states currently have “franchise relationship” laws that limit the ability of franchisors to terminate franchise agreements or to withhold consent to the renewal or transfer of the agreements. California regulates the provision of loans to franchisees as part of the sales of the franchises. Such regulations may require the franchisors to register under the state law that governs business lenders, if no exemption from registration is available, or may limit the security or collateral the franchisors may use to reduce the risks associated with loans. The laws of jurisdictions outside the United States regulate pre-sale disclosure and the commencement of franchising. Three Canadian provinces and a number of foreign jurisdictions have adopted pre-sale disclosure regulations. China has enacted regulations that, among other things, require an organization to operate properties in at least two locations in the area where the organization wants to franchise brands before China will permit the organization to commence acting as a franchisor. We have received legal advice that such regulations do not prevent us from continuing to franchise brands that we had franchised in China before the effective date of the regulations. Persons with Disabilities. The Americans with Disabilities Act, or ADA, requires public accommodations, such as lodging and restaurant facilities, to (i) offer facilities without discriminating against persons with disabilities, (ii) offer auxiliary aids and services to persons with hearing, vision or speech disabilities who would benefit from such services without fundamentally altering the nature of the goods or services offered and (iii) remove barriers to mobility or communication to the extent readily achievable. The U.S. Department of Justice published “Standards for Accessible Design” and “Accessibility Guidelines,” collectively referred to as ADAAG, that, among other things, prescribe a specified number of handicapped accessible rooms, assistive devices for hearing, speech and visually impaired persons, and general standards of design applicable to all areas of facilities subject to the law, including hotels. The ADAAG specifies the minimum room design and layout criteria for handicapped accessible rooms. Any newly constructed facility (first occupied after January 26, 1993) must comply with ADAAG and be readily accessible to and useable by persons with disabilities. The owner of each facility and its contractors are responsible for ADA and ADAAG compliance.
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