Senator Targets Franchise Abuses

Inequity in the ‘franchise partnership’ between franchisors and the franchisee community has finally resonated with some in power – in particular, Senator Catherine Cortez Masto (D-NV). In an 87-page report entitled: “Strategies to Improve the Franchise Model: Preventing Unfair and Deceptive Franchise Practices” and released by her office this week, the first-term Senator from Nevada…

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He’s Not Fired, But He’s Still Gone

It is a different process but the same outcome over at the Federal Trade Commission offices where FTC Chairman Joseph Simmons announced he will be resigning from the FTC to allow President Biden appoint his own people. His resignation will be effective January 29. He also announced the pending departure of another eight senior level…

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Comments on FTC Franchise Rule Due Thursday

The Federal Trade Commission (FTC) is currently undertaking a formal review of the Franchise Rule, which you may recall, requires franchisors to publish a Franchise Disclosure Document (FDD) designed to provide material information to assist prospective franchisees in their decision whether or not to purchase the franchise. In its review, the FTC is looking at…

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Miscellaneous

We’re aware of a number of upcoming events you may want to put on your calendar for the early part of November. No doubt overshadowed by the Presidential election on November 3, the US Small Business Administration (SBA) will be celebrating veteran owned businesses across the country with the National Veterans Small Business Week from…

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FTC Getting Active on Franchise Issues

Well, if they’re not, they certainly could be! As we know, the Federal Trade Commission (FTC) is the only agency of the federal government with any direct charge relating to the franchising industry. As such, it is welcome news to report that the FTC will be holding a virtual workshop on November 10 as part…

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Senate Committee Hears from FTC Commissioners

The US Senate Committee on Commerce, Science and Transportation held a hearing this week specifically on the Federal Trade Commission, the federal agency charged with oversight of franchising across the country. The panel of witnesses at the August 5 hearing included all five of the FTC Commissioners, including Commissioner Rohit Chopra, who specifically highlighted some…

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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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Senate Hears Need for Franchising Transparency

The U.S. Senate Banking, Housing and Urban Affairs Subcommittee on Economic Policy, chaired by Arkansas Senator Tom Cotton, held a public hearing this week on the matter: “Economic Mobility: Is the American Dream in Crisis?” One of the five individuals invited to testify was Subway franchisee and former Coalition of Franchisee Associations Chairman Keith Miller.…

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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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