Restaurant Franchising, 3rd Edition

120 Restaurant Franchising

12 requires disclosure of information about the use of the Internet to achieve

sales and the use of alternative channels for distributing a franchisor’s goods.

These disclosures are required regardless of whether the franchisor provides

an exclusive territory. In this regard, Item 12 requires a franchisor to disclose

whether, under the franchise agreement, the franchisor itself can solicit or accept

orders from consumers within a franchisee’s territory; the franchisor reserves

the right to use alternative channels of distribution within a franchisee’s terri-

tory, including Internet, catalog, or telemarketing sales; ...