Why Changes are Needed in the Franchise Disclosure Rule

The original federal Franchise Rule was issued by the United States Federal Trade Commission (FTC) in 1979 and since that time has been amended and updated only once in a revised rule that became effective in 2008. The Franchise Rule requires that any prospective franchisee, including the purchaser of an existing franchise unit or an…

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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…

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Franchise Rule Under Review

The Federal Trade Commission (FTC) issued a notice this week regarding changes to 16 CFR Part 436, Disclosure Requirements and Prohibition Concerning Franchising, more commonly referred to as the Franchise Rule. The notice advises that the FTC is seeking comment from the public on whether to make any changes to the Franchise Rule while the…

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