The Federal Trade Commission (FTC) drafter of the Franchise
Disclosure Rule, which requires the delivery
of the Franchise Disclosure Document to prospective franchisee is looking for comments.  The comment requires part of the FTC periodic
review of the cost and benefits of the regulations.  Specifically, the FTC is looking for comments on the following questions: 

1.                              Is there a continuing need for the [Franchise
Disclosure] Rule? Why or why not?

2.            What
benefits, if any, has the Rule provided to prospective franchisees, including
small businesses? What evidence supports the asserted benefits?

3.            What
modifications, if any, should be made to the Rule to increase its benefits to
prospective franchisees, including small businesses?

a.            What
evidence supports the proposed modifications?

b.            How would
these modifications affect the costs the Rule imposes on franchisors and
franchise sellers, including small businesses?

c.             How
would these modifications affect the benefits to prospective franchisees?

4.            What
impact has the Rule had on the flow of truthful information and on the flow of
deceptive information to prospective franchisees?

5.            What
significant costs, if any, has the Rule imposed on prospective franchisees,
including small businesses? What evidence supports the asserted costs?

6.            What
modifications, if any, should be made to the Rule to reduce any costs on
prospective franchisees, including small businesses?

a.            What
evidence supports the proposed modifications?

b.            How would
these modifications affect the benefits provided by the Rule?

7.            What
benefits, if any, has the Rule provided to franchisors and franchise sellers,
including small businesses? What evidence supports the asserted benefits?

8.            What
modifications, if any, should be made to the Rule to increase its benefits to
franchisors and franchise sellers, including small businesses?

a.            What
evidence supports the proposed modifications?

b.            How would
these modifications affect the costs the Rule imposes on franchisors and
franchise sellers?

c.             How
would these modifications affect the benefits to prospective franchisees?

9.            What
significant costs, if any, including costs of compliance, has the Rule imposed
on franchisors and franchise sellers, including small businesses? What evidence
supports the asserted costs?

10.          What
modifications, if any, should be made to the Rule to reduce the costs imposed
on franchisors and franchise sellers, including small businesses?

a.            What
evidence supports the proposed modifications?

b.            How would
these modifications affect the costs the Rule imposes on franchisors and
franchise sellers?

c.             How
would these modifications affect the benefits to prospective franchisees?

11.          What
evidence is available concerning the degree of industry compliance with the
Rule?

12.          What
modifications, if any, should be made to the Rule to account for changes in
relevant technology or economic conditions? What evidence supports the proposed
modifications?

13.          Provide
comment on any overlap or conflict with other federal, state, or local laws, or
regulations.

a.            What
evidence supports any asserted conflicts?

b.            With
reference to asserted conflicts, should the Rule be modified? If so, why or why
not?

The questions posed by the FTC provide a chance for introspective of the Franchise Disclosure Rule and perhaps more particularly the Franchise Disclosure Document.  I would gander to say the Franchise Disclosure Rule and Franchise Disclosure Document (FDD) will not be abandon or eliminated by the FTC.  And, if the FTC did abandon the Rule, many states have enacted like statutes and regulations that mirror or greater than the federal FTC Franchise Disclosure Rule, and therefore, such abandonment will cause minor alteration the regulatory nature of franchising. 

Source: franchise blaw

What Do You Think About the FTC Franchise Disclosure Rule?
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