Post on 04-Jun-2018
WELCOME TO OUR WEBINARFRANCHISING AND SOCIAL
MEDIA 201
Thursday, December 10, 2009
Richard Morey and Jennifer Baumann
*This webinar is offered for informational purposes only, and the content should not be construed as legal advice on any matter.
Social Media Webinar 201 2
I. Introduction – Overview
II. Social media policy for company-owned store employees
III. Develop social media policy for franchisees
IV. Social media and franchise sales
V. Administering new policies and guidelines
VI. Conclusion
Franchising and Social Media 201 Outline
Rick Morey
PartnerFranchise and DistributionChicago
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 3
Introduction – Overview
201-level course
Focus on use of social medial to interact with customers and franchisees, although there are many other uses
Develop social media policy for company store employees
Develop social media policy for franchisees
Develop rules for using social media in franchise sales
Develop framework and personnel to administer policies
Suggested best practices, but law and technology are changing constantly
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 4
Social media guidelines for employees
A “policy” for employees’ business-related use of social media vs. “guidelines” for employees’ personal use of social media
GuidelinesConcerns over first amendment/free speech
Stale, out-of-touch employer, if the franchisor tries to regulate the personal social media of its employees
Practical concerns about how this could be accomplished or enforced (i.e., what sites are employees using?)
Policy vs. Guidelines
Jennifer Baumann
Technology, Sourcing and Commercial – Chicago
Social Media Webinar 201 5
Social media guidelines for employees
Promotions vs. Personal Use Employees are not to reference the company or the brand (if an employee does reference/promote company, then it is considered business-related social networking)
For example:Personal Facebook page can reference the company as an employer, but that’s itBrand/trademarks should not be part of the employee’s Twitter handle
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 6
Social media guidelines for employees
Non-binding guidance as to employees personal social media
For example:
Comply with social media sites terms of use
Do not disclose confidential information
Do not disparage competitors
Remember the information you post is around forever and can be found by future employers
Consider all your favorite clichés
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 7
Social media policy for companies
Uses for business-related social media to communicate with customers are almost limitless
For example:Promotions/marketing
Tweets on upcoming specials at particular locationsConducting surveys
Customer relations: @comcastcares
Finding talented employees
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 8
Social media policy for companiesBrand strategy
Franchisors should consider strategyDo you want multiple branded Facebook pages or Twitter handles?
Consider using the same strategy as for domain names and website
Always direct traffic back to the brand’s main site: Protects data ownership and privacy concerns
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 9
Legal considerations for marketing through social media
Developing social media policy for employeesAdvertising and endorsements
“Cewebrities” are the new celebrities
FTC guidesWho should be authorized to tweet or post blogs?Employees or third party reviewers“Results not typical”
Illegal Lottery
FTC Guides
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 10
Twitter promotions
Promotions with conditions to Entry:“Win a free $100 gift certificates if you RT this message!”
Contests:“What’s your best memory at our restaurant? Best entry
wins free breakfast. Use the hashtag # to enter”
These are both promotions and sweepstakes governed by state laws with no full rules attached, eligibility requirements, timing requirements, etc.
Consider using Twitter to promote a contest or sweepstakes, but drive traffic back to website that contains full rules and sufficient opportunities to win
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 11
Right to implement social media policy for franchisees
Most franchise agreements allow franchisors to establish standards and policies for franchisees’use of social media
Provision prohibiting use of marks in any medium without consent
Provision requiring prior approval of marketing materials – waived if franchisee complies with policy
Older agreements allow franchisor to set standards
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 12
Communicating policy to franchisees
Policies should be formalized somehow, but are likely to change frequently
Part of manuals, if they are on extranet and/or updated frequently
System-wide e-mail is softer approach
Review franchise agreement to ensure that the policy is binding on the franchisees
Manuals or System-wide E-mail
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 13
Develop social media policy for franchisees
Start with policy for company store employees
Balance benefits of brand control with increased risk of vicarious liability
If franchisee disparages competitor, having policy in place that prohibits disparagement increases risk of franchisor liability
Most times, potential damage to brand outweighs risk
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 14
Personal use of social media by franchisees
Concerns over regulating personal social media use by employees applies for franchisees too
Policy for business, guidelines for personal
Recommend, but do not require, that franchisees adopt guidelines for their employeesRick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 15
Social media and franchise sales
Using social media to communicate with prospective franchisees:
Communicating new financing options, additional franchisor services or other changes in program
Highlighting development in new areas or particular sites that would be well-suited for the brand
Highlighting new area or franchise sales
Brand appears fresh, current and on top of latest technology
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 16
Social media and franchise sales
FTC rule has guidelines for e-disclosure, but no laws cover social media.Allow only sales staff who have been trained on franchise law issues to use social media to communicate with prospective franchiseesFirst concern: Must social media “advertising” be submitted to the registration states (CA, MD, MN, NY, ND, RI and WA) for approval?
2001 NASAA policy exempts website “advertising” if (a) URL on FDD and (b) ad not directed to state.One approach: put URLs on FDD and make passive
Disclaimer/statement on Facebook sign-on Do not require prospects to disclose home state
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 17
Social media and franchise sales
Second concern: If franchise sales staff communicates with prospect in state where franchisor is not then registered, is this an illegal “offer” of a franchise in that state?
Minimize risk with registration in all states
Practical approachDo not require prospects to disclose home state when signing on as friend or followerWhen sales staff has direct contact with prospect, find out home state and, if registration is not effective, send clear e-mail
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 18
Social media and franchise sales
Third concern: Financial performance representations (FPRs) in social media.
FPR – Specific level or range of actual or potential sales, income or profits. Generally, FPRs must be in FDD
Sales staff can make FPRs in social media, like other advertising, if FPR is in FDD (except MD and MN)
What if existing franchisee posts FPR on brand’s Facebook page? Is this information from franchisee or franchisor?
Be clear that posts are responsibility of authorSection 230 immunity under the Communication Decency Act limits responsibility if host does not develop content or solicit input. Analogy to franchise contextStill, probably best to remove post as soon as possible
Restrict the use of social media in franchise sales efforts
Rick Morey
PartnerFranchise and DistributionChicago
Social Media Webinar 201 19
Continuing Education Credit Code
For those attorneys seeking MCLE credit for participating in this webinar, please use the following code on your request for Certificate of Attendance:
G293907392
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Administering and monitoring social media policy
Designate a point of contact in the companyRequirement for point of contacts:
Must be familiar with and use the social media technologyMay not be the person who develops or updates the content.
Consider hiring a social engagement or community manager
Create a mechanism for reporting their social media activities to the coordinator
Invest both time and money in technologyConsider using any and all mechanisms to drive traffic to the company-owned website
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago
Social Media Webinar 201 21
Conclusion
Social media is not a passing fadNew part of culture
Embracing social media What it does and does not do
Finding ways to control the use of the media in a way that enhances the brand, but hopefully avoids the legal pitfalls, should be the goal
Jennifer Baumann
Technology, Sourcing and Commercial - Chicago