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Parent Disclosure Under the Amended FTC Rule: The Parent Exposed

In the October/November 2004 Special Issue of <i>FBLA</i>, we speculated that if there was one group that may be unhappy about the Federal Trade Commission ('FTC') Staff Report's proposed revisions to the FTC Franchise Rule, it had to be the parents of franchisors (or maybe franchisors who have parents). Now that the FTC has released the final amended FTC Franchise Rule, we know that a parent's disclosure burden will be increased. One provision may have a profound effect on how certain franchise companies do business. Because there are some ambiguities in what is being required, it may be prudent for the FTC to clarify its intention in the Guidelines it plans to issue.

23 minute read March 28, 2007 at 11:45 AM
By
John R. F. Baer
Parent Disclosure Under the Amended FTC Rule: The Parent Exposed

In the October/November 2004 Special Issue of FBLA, we speculated that if there was one group that may be unhappy about the Federal Trade Commission ('FTC') Staff Report's proposed revisions to the FTC Franchise Rule, it had to be the parents of franchisors (or maybe franchisors who have parents).

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