The Federal Trade Commission will host an online public workshop on November 10, 2020 as part of the agency’s review of the Franchise Rule, which is designed to ensure that consumers who are considering buying a franchise have key information they need to weigh the risks and benefits of that potential investment.
The November 10 workshop will explore a number of issues related to the Franchise Rule, and the comments received in response to the FTC’s request for comment about the Rule last year. Specifically, the workshop topics will include representations that franchisors make about financial performance, the use of disclaimers, and the format of the disclosure document required by the Rule.
The Franchise Rule was first issued in 1978. The Commission approved revisions to the Rule in 2007, which went into effect in 2008. It requires, among other things, that franchisors provide the information in a standard format, allowing consumers to more easily compare possible franchises to each other. It also prohibits misrepresentations by franchise sellers.
Interested parties may file a comment or a request to participate as a panelist by following the instructions in the notice that will be published in the Federal Register shortly. Comments on the issues addressed in the workshop can be submitted online at www.regulations.gov until December 17, 2020. Requests to participate as a panelist can be submitted electronically to [email protected] until October 1, 2020.
The workshop will be webcast live on the FTC’s website. The agenda and other details about how to view the workshop will be posted on the event page closer to the event.