This question may sound a little silly, until one realizes that the significant remedy of rescission is available for two years if no disclosure document
has been delivered and only 60 days if a defective disclosure document
There are rules about how one must make e-disclosure, and how the UFOC or franchise disclosure document
must be drafted to allow for e-disclosure.
The revised rule also eliminates the old FTC Franchise Rule's "disclosure triggers," which required franchise companies to furnish their disclosure documents
to prospective franchisees at the earlier of the "first personal meeting" with the prospect or 10 business days prior to the franchisee's execution of any contract or the payment of any money to the franchise company.
There are only five sections on the form and, at least for a franchisor used to the franchise disclosure document
, the required information is both obvious and minimal:
If in two years the franchise was a poor performer, or the market is just not performing well, franchisees are beginning to go back and carefully review their disclosure documents
," he says.
While the MSRB has operated EMMA in various pilot stages since March 2008, today it launches the final feature of providing electronic access to market-wide continuing disclosure documents
The regulator is also concerned about Initial Disclosure Documents
, which are used by mortgage brokers and set out what services they are providing and what their charges are.
Because the information posted on the site is legally available to anyone through public disclosure documents
or private information gathering agencies, Kirkland may find itself in the unenviable position of arguing that it is permissible to procure this information but not to pass it along to others.
To accomplish its goal of getting more people to read the disclosure documents
, Levitt said the SEC would propose the inclusion of a new risk-return summary at the beginning of all prospectuses, a narrative description of risks, a bar chart illustrating a fund's returns over the last 10 years and a table comparing the fund's performance with that of a broad market index.
The disclosure document
must include a certificate that the disclosure documents
contain no misrepresentations, and be signed by the franchisor.
The next consideration is documentation - except in a "heads up" investment, where the level of participation in the investment is equal among all investors and no passive investor-promoter relationship is involved, disclosure documents
must be prepared, fully notifying investors of all material risks related to the investment; describing conflicts of interest and related party transactions; setting forth a detailed use of the proceeds of the offering, and describing the tax implications.
ASIC recognises that there are many advantages to using the internet and other electronic means to distribute disclosure documents
and application forms, which can make information easier to access, read and understand for investors.
June 1 /PRNewswire/ -- The Municipal Securities Rulemaking Board (MSRB) today implemented an all-electronic standard for free public access to primary market disclosure documents
and transaction price information for the municipal securities market.
The buyer's lawyers should carefully review several years of disclosure documents
to assure technical compliance.
Commonly called MD&A, such information is included in public companies' disclosure documents