February 18, 2022 | Publications
Cheng Cohen Defends Use of Q&As in NASAA Commentary
Cheng Cohen recently submitted comments to the North American Securities Administrator’s Association (NASAA) supporting the continued use of questionnaires and acknowledgments (Q&As) to facilitate fair dealing in franchise sales. The comments were in response to NASAA’s proposed statement of policy which, among other things, seeks to eliminate franchisors’ use of, and reliance on, Q&As in compliance efforts. As set forth in our comments, available below, Q&As serve a vital role in complying with the FTC Franchise Rule. Q&As enable franchisors to receive feedback on their sales processes directly from prospective franchisees, and in doing so, encourages discussion that allows franchisors to identify and correct non-compliance with the FTC Franchise Rule.