Amfil Technologies Inc (FUNN)

[shajandr]

"I do not think there is an actual LAW in effect that deny's Snakes and Lattes Franchising."

That thought is wronGGG. Very wronGGG. Franchise law is highly regulated and somewhat complex. As others have pointed ~OUTT, with~OUTT the PROPER type of audited financials - that specifically break~OUTT SnL income (and I bleeve also by locations) and other financial elements - NOTT a CONsolidated audit, as AMFE/FUNN has had done - SnL will nott be able to provide the required disclosure to potential franchisees. The prospectus wood require such audited broken-~OUTT franchise-specific financials. And that's just ONE prollem AMFE/FUNN has to deal with. Legally, franchising is a pain in the ass and requires a significant amount of work and legal and acoounting work before one can begin franchising. AMFE/FUNN does nott seem to have even BEGUN such work.

https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/franchise-rule

http://www.klgates.com/files/tbl_s48News/PDFUpload307/10346/FranchisinginUS_IBA_conf_0919.pdf (Skip to page 5 under FRANCHISE REGULATIONS.)

https://www.franchiselawsolutions.com/franchising/state-specific-laws/

https://www.bestlawyers.com/methodology/practice-areas/united-states/franchise-law

Federal Presale Disclosure. Franchising is a heavily regulated industry. At the federal level, the FTC Franchise Rule requires franchisors to provide prospective franchisees with a detailed prospectus (Franchise Disclosure Document (“FDD”)) that contains information about the franchisor, the franchise system, the franchisor’s financial statements, and required agreements. Franchisors cannot make “financial performance representations” about the success of their franchisees unless the franchisor has substantiation and the information is included in the FDD. FDDs must be updated annually or more often if there are material changes to the FDD disclosures.

State Franchise Laws. Fifteen states have enacted laws that regulate pre-sale disclosure and registration. Some of the laws have disclosure requirements that vary from the FTC Franchise Rule, so the FDD may contain state-specific addenda or multiple FDDs may be necessary. These states require FDDs to become registered with a state agency before the franchisor is permitted to offer or sell franchises in the state. In addition, many states have passed laws that are designed to protect franchisees from what is perceived to be their inferior bargaining position compared to franchisors. These laws restrict the right of franchisors to terminate franchise agreements, disapprove transfers of franchises, discriminate between franchisees, require disputes to be resolved out of state, and similar limitations.