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Franchisee Associations See Item 20 Disclosure Plan as One Step Forward, Two Steps Back

The Federal Trade Commission's (FTC) long-awaited Staff Report recommends the retention of an important advancement for the benefit of prospective franchisees: the mandated disclosure of trademark-specific franchisee associations in Item 20. Many franchisee advocates viewed this provision in the October 1999 Notice of Proposed Rulemaking (NPR) as a laudable recognition of the legitimate and constructive role that franchisee associations can and do play in our industry, including as an unfiltered source of information for prospective franchisees.

7 minute read October 18, 2004 at 09:32 AM
By
Eric H. Karp
Franchisee Associations See Item 20 Disclosure Plan as One Step Forward, Two Steps Back

The Federal Trade Commission's (FTC) long-awaited Staff Report recommends the retention of an important advancement for the benefit of prospective franchisees: the mandated disclosure of trademark-specific franchisee associations in Item 20.

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