As we’ve reported to you in the past, the Federal Trade Commission (FTC) is seeking public comment on whether to make changes to the Franchise Rule as part of its systematic review of all FTC rules. The public comment period is currently open through May 13, 2019 so please get your comments in soon. Recall that the primary purpose of the Franchise Rule (officially known as Disclosure Requirements and Prohibitions Concerning Franchising) is to provide prospective franchisees the material information they need in order to weigh the risks and benefits of purchasing a particular franchise. The Rule requires franchisors to furnish a Franchise Disclosure Document that includes specific information about the franchisor, the franchise business, the terms of the franchise agreement and also specifically prohibits misrepresentations by franchise sellers. To file comments, follow instruction in the FTC notice.
FTC Seeks Comments on Franchise Rule
As we’ve reported to you in the past, the Federal Trade Commission (FTC) is seeking public comment on whether to make changes to the Franchise Rule as part of its systematic review of all FTC rules. The public comment period is currently open through May 13, 2019 so please get your comments in soon. Recall that the primary purpose of the Franchise Rule (officially known as Disclosure Requirements and Prohibitions Concerning Franchising) is to provide prospective franchisees the material information they need in order to weigh the risks and benefits of purchasing a particular franchise. The Rule requires franchisors to furnish a Franchise Disclosure Document that includes specific information about the franchisor, the franchise business, the terms of the franchise agreement and also specifically prohibits misrepresentations by franchise sellers. To file comments, follow instruction in the FTC notice.
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