News & Analysis as of

FTC Franchise Rule Disclosure Requirements

Davis Wright Tremaine LLP

Warns Franchisors Against Unfair Practices and Spotlights Risks in Franchising

The FTC administers the federal franchise sales law, which requires all franchisors engaged in franchise sales in the United States to deliver a franchise disclosure document (FDD) to their prospective franchise buyers unless...more

BakerHostetler

FTC Ratchets Up Focus on Franchise Issues

BakerHostetler on

Ian Fleming famously wrote, “Once is happenstance. Twice is coincidence. Three times is enemy action.” Although we aren’t quite talking enemy action here, we are seeing heightened Federal Trade Commission (FTC) interest in...more

Lewitt Hackman

Franchisor 101: Preemption Preempted

Lewitt Hackman on

Patel v. 7-Eleven, a case in Massachusetts, has been closely watched since the ABC test took hold of franchise relationships in employee misclassification cases across the country. A putative class of 7-Eleven franchisees...more

Lippes Mathias LLP

Dealing With Disclosure Requirements for Franchises and Business Opportunities

Lippes Mathias LLP on

Everyone is familiar with franchises – if you have been to a McDonalds® or a Starbucks®, chances are the location is operated by a franchisee. Less familiar, at least in terms of national name recognition, are ventures...more

Foley & Lardner LLP

FTC Considering Changes to Franchise Rule

Foley & Lardner LLP on

For the first time in over a decade, the Federal Trade Commission is considering changes to its Franchise Rule. The Rule represents an effort by the Commission to prevent unfair and deceptive practices by franchisors against...more

Lewitt Hackman

New Franchise Regulations on the Horizon?

Lewitt Hackman on

On September 16, 2020, Rohit Chopra, one of the five commissioners on the Federal Trade Commission (FTC), declared on Twitter that “[franchise] regulators must stop unfair, deceptive, and discriminatory practices that target...more

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