Disclosure Requirements and Prohibitions Concerning Franchising

Samenvatting

The Federal Trade Commission ("FTC" or "Commission") is requesting public comment on its Trade Regulation Rule entitled "Disclosure Requirements and Prohibitions Concerning Franchising" ("Franchise Rule" or "Rule"). The Rule makes it an unfair or deceptive act or practice for franchisors to fail to give prospective franchisees a Franchise Disclosure Document providing specified information about the franchisor, the franchise business, and the terms of the franchise agreement. The Rule also prohibits related misrepresentations by franchise sellers. The Commission is soliciting comments about the efficiency, costs, benefits, and regulatory impact of the Rule as part of its systematic review of all current Commission regulations and guides. All interested persons are hereby given notice of the opportunity to submit written data, views, and arguments concerning the Rule.