Business

Interested in purchasing a franchise? Mark your calendars!

From the Federal Trade Commission:

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.

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.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).

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