Franchise brands thrive in the booming health and fitness industries. And for these consumer-facing brands, compelling advertising is vital. But in light of the FTC’s brand-new authoritative guidance on health claims in marketing, it’s more important than ever for franchise systems to ensure that their marketing is compliant. At the same time, a growing body of law at both the federal and state level has increased the risk that a franchisor could be found indirectly liable for the false advertising of its franchisees (either under a theory of vicarious liability or under a theory of contributory liability).

Litigation Of Counsel Drew Steven’s article “Franchising Is Good for Your Health, Right? Health Claims in Advertising in the Franchise Industry” summarizes the FTC’s new guidance and the relevant case law under federal and state law that franchisors need to know, while also providing concrete recommendations and action steps that franchise systems can enact now to reduce legal risk.

Click here to read the article. 

©2024. Published in Franchise Law Journal, Vol. 43, No. 1, Winter 2024, by the American Bar Association. Reproduced with permission. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association or the copyright holder.