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Franchisors' Perspective: Many Attractive Proposals

By David J. Kaufmann
October 18, 2004

Franchisors should find compellingly attractive the changes to the federal disclosure paradigm that will transpire if the Federal Trade Commission's (FTC) Franchise Rule is revised as suggested in the Commission's Staff Report of Aug. 25, 2004.

The revised Rule will contain no “relationship” provisions governing such issues as franchise termination, renewal, sourcing or transfer. This will be to the relief of franchisors, but to the consternation of certain franchise advocates who went so far in the FTC's rulemaking proceeding as to suggest abolishing the Rule altogether if such “relationship” provisions were not included.

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