NLRB Proposes New Rule to Revert Franchisor Liabilities to Franchisees Publication: Blue Mau Mau
Posted on Blog April 21, 2015
In general, most franchise agreements require a franchisee to spend a certain amount on advertising and give the franchisee significant latitude to control how those advertising dollars are spent. In deciding how to spend advertising dollars and selecting particular types of advertising, a franchisee needs to exercise caution and ensure that the advertising does not run afoul of the Telephone Consumer Protection Act (“TCPA”). The TCPA, among other things, prohibits (i) certain unsolicited advertisements using automated systems or prerecorded messages, and (ii) certain solicitations to a numbers on the do-not-call registry. If an advertisement or solicitation runs afoul of the TCPA, both a sender of the advertisement and the person on whose behalf the advertisement is sent can be liable for statutory damages of at least $500 per improper advertisement. As such, a franchisee must exercise caution in advertising and make sure that any third-party hired to provide advertising services is compliant with the TCPA. If you have questions about the TCPA or how it might affect your advertising activities, please contact Zarco Einhorn Salkowski & Brito, P.A. at (305) 374-5418.