While rescission claims under franchise legislation are widely recognized as a key area of legal exposure, misrepresentation claims—both statutory and common law—can pose an equally serious and often less understood risk for franchisors and their teams.

This session will explore how interactions throughout the franchise recruitment process—from initial conversations with development staff to operational vetting, marketing, executive interactions, and franchisee validation—can unintentionally give rise to misrepresentation claims. Unlike statutory rescission, misrepresentation claims may apply to a broader group of individuals and can be brought well after the franchise agreement is signed.

Using case law and real-world scenarios, the panel will compare rescission and misrepresentation claims, clarify who can be held liable, and provide practical strategies franchisors can use to train internal teams, manage communications, and reduce legal risk throughout the sales and onboarding process.

Learning Objectives:

1. Understand the legal distinctions between rescission and misrepresentation claims, including timelines, liability, and key statutory vs. common law considerations.

2. Identify common sources of misrepresentation risk across all departments involved in franchise recruitment and onboarding—including sales, operations, marketing, and validation.

3. Learn actionable steps to mitigate misrepresentation risk, including internal training, documentation practices, and cross-functional communication protocols.