According to the FTC's complaint detailing the charges, Software Concepts violated the rule by failing to provide prospective franchisees with the required disclosure document identifying information about existing franchisees, and the earnings document. Based on the defendants' financial disclosures, the proposed settlement would not require them to pay any civil penalties. Should the documents later be found to misrepresent their financial condition, the settlement would permit the Commission to reopen the matter and seek civil penalties. The Commission vote to authorize the filing of the complaint and proposed settlement was 4-0. This consent decree is for settlement purposes only and does not constitute an admission by the defendant of a law violation.
Consent decrees have the force of law when signed by the judge.
Copies of the complaint, proposed consent decree and the brochures are available from the FTC's Public Reference Branch, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580.