1851

<a href="https://www.ftc.gov/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ftc-requests-public-comment-regarding-franchisee-franchisor-relationships-2721796" target="_blank" rel="nofollow">The U.S. Federal Trade Commission (FTC)</a> recently made a&nbsp;<a href="https://www.regulations.gov/document/FTC-2023-0026-0001?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ftc-requests-public-comment-regarding-franchisee-franchisor-relationships-2721796" target="_blank" rel="nofollow">second request</a> for feedback regarding franchise agreements and franchisor business practices, specifically how franchisors exert control over franchisees and their employees.&nbsp;“Amidst growing concern around unfair and deceptive practices in the franchise industry, the FTC hopes to hear from a broad range of stakeholders about how the franchise relationship is working, and how it is not,” said&nbsp;<a href="https://www.ftc.gov/about-ftc/commissioners-staff/samuel-levine?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ftc-requests-public-comment-regarding-franchisee-franchisor-relationships-2721796" target="_blank" rel="nofollow">Samuel Levine</a>, Director of the FTC’s Bureau of Consumer Protection, in a statement. “This cross-agency effort will inform our policy and enforcement efforts as we work to ensure a fair marketplace for franchisees.”&nbsp;&nbsp;The commission aims to investigate the methods franchisors use to disclose certain elements and contractual conditions in&nbsp;<a href="https://1851franchise.com/6-legalese-terms-every-franchisee-should-understand-2720876">franchise agreements</a>. Within a franchise arrangement, franchisees usually pay a fee to gain access to a business model or system created by the franchisor, the privilege of utilizing the franchisor's trademark for a set duration, and support. Nonetheless, owning a franchise involves predetermined expenses, franchisor-imposed regulations, and contractual stipulations.“It’s clear that, at least in some instances, the promise of franchise agreements as engines of economic mobility and gainful employment is not being fully realized,” said&nbsp;<a href="https://www.linkedin.com/in/elizabeth-wilkins-9176a74b?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ftc-requests-public-comment-regarding-franchisee-franchisor-relationships-2721796" target="_blank" rel="nofollow">Elizabeth Wilkins</a>, Director of the FTC’s Office of Policy Planning. “This RFI will begin to unravel how the unequal bargaining power inherent in these contracts is impacting franchisees, workers, and consumers.”As part of the&nbsp;<a href="https://www.ftc.gov/system/files/ftc_gov/pdf/Franchise-RFI.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ftc-requests-public-comment-regarding-franchisee-franchisor-relationships-2721796" target="_blank" rel="nofollow">Request for Information</a>, the FTC invites input from franchisors, franchisees, present and former staff members of franchisors and franchisees, government agencies, economists, lawyers, scholars, consumers, and other relevant parties to share their perspectives on a broad range of topics impacting franchisees and their employees, including:<ul><li>Franchisees’ ability to negotiate the terms of franchise agreements before signing, and the ability of franchisors to unilaterally make changes to the franchise system after franchisees join;</li><li>Franchisors’ enforcement of non-disparagement, goodwill or similar clauses;</li><li>the prevalence and justification for certain contract terms in franchise agreements;</li><li>Franchisors’ control over the wages and working conditions in franchised entities, other than through the terms of franchise agreements;</li><li>Payments or other consideration franchisors receive from third parties (e.g., suppliers, vendors) related to franchisees’ purchases of goods or services from those third parties;</li><li>Indirect effects on franchisee labor costs related to franchisor business practices; and</li><li>The pervasiveness and rationale for franchisors marketing their franchises using languages other than English.</li></ul>Moreover, the FTC is also soliciting feedback until April 19 on a suggested regulation to prohibit&nbsp;<a href="https://1851franchise.com/what-the-ftc-noncompete-proposal-could-mean-for-franchising-2720767">non-compete provisions</a> for employees under specific circumstances. In particular, the FTC is inquiring about the potential applicability of the proposed rule to non-compete clauses involving franchisors and franchisees.Those interested in submitting comments can do so at&nbsp;<a href="https://www.regulations.gov/docket/FTC-2023-0026?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ftc-requests-public-comment-regarding-franchisee-franchisor-relationships-2721796" target="_blank" rel="nofollow">Regulations.gov</a> for the next 60 days. Once submitted, comments will be posted to the website.Related articles:<ul><li><a href="https://1851franchise.com/what-the-ftc-noncompete-proposal-could-mean-for-franchising-2720767">What the FTC Noncompete Proposal Could Mean for Franchising</a></li><li><a href="https://1851franchise.com/senator-calls-for-ftc-sba-crackdown-on-franchising-2715484">Senator Calls For FTC, SBA Crackdown on Franchising</a></li><li><a href="https://1851franchise.com/why-ifa-says-the-proposed-independent-contractor-rule-could-spell-trouble-for-franchisees-2720642#industry">Why IFA Says the Proposed Independent Contractor Rule Could Spell Trouble for Franchisees</a></li><li><a href="https://1851franchise.com/franchisee-vs-franchisor-the-different-roles-in-a-franchise-2721544#stories">Franchisee vs. Franchisor: The Different Roles in a Franchise</a></li></ul>

FTC Requests Public Comment Regarding Franchisee-Franchisor Relationships

1851 Franchise

In an effort to combat deceptive practices within the franchise industry, the FTC is looking for feedback from franchisors, franchisees, government entities, economists, attorneys, academics and franchise employees.?

ftc-requests-public-comment-regarding-franchisee-franchisor-relationships

SweatHouz

Why This P.E. Expert Left Wall Street To Find a New Passion and Purpose with SweatHouz Franchise

why-this-pe-expert-left-wall-street-to-find-a-new-passion-and-purpose-with-sweathouz-franchise

Workout Anytime

Workout Anytime Announces National Partnership With the American Cancer Society

workout-anytime-announces-national-partnership-with-the-american-cancer-society

BooXkeeping

Max Emma Featured on the Cover of The Inc Magazine

Max Emma Featured on the Cover of The Inc Magazine’s “5 Most Pioneering Business Leaders to Follow in 2025”

max-emma-featured-on-the-cover-of-the-inc-magazines-5-most-pioneering-business-leaders-to-follow-in-2025

CapitalSpring

Graphic with orange chart and hand pointing at graph

CapitalSpring Closes on Initial $505 Million of $1 Billion Target just Two Months After the Launch of its Seventh Flagship Investment Fund 

capitalspring-closes-505m-fund-vii

Children's Lighthouse

How Families Are Building Brighter Futures Together With Children’s Lighthouse

how-families-are-building-brighter-futures-together-with-childrens-lighthouse

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Crunch Fitness Franchise - Sixth Street Minority Stake - CR Fitness - 1851 Franchise

Sixth Street Takes Minority Stake in CR Fitness, the Largest Crunch Fitness Franchisee

cr-fitness-crunch-fitness-sixth-street-investment

houses, Why Top Franchises of 2025 Outperform Independent Businesses

Why the Top Franchises of 2025 Outperform Independent Businesses

how-franchises-outperform-independent-business-2025-tech-data

Photo of Happinest Brands teams standing together in front of branded vehicles

Happinest Brands Continues Strong 2025 Trajectory With Major Q3 Growth and Strategic Wins

happinest-brands-q3-franchise-growth

Franchise Owners Step Up To Support Communities During Government Shutdown - 1851 Franchise

Franchise Owners Step Up To Support Communities During Government Shutdown

franchise-community-support-shutdown

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

Thursday 1851 Franchise Agg - NASAA’s Noncompete Push

NASAA’s Noncompete Push Puts Franchise Growth on Uncertain Ground

franchise-noncompete-nasaa-advisory-reasonableness-standard

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

FTC Requests Public Comment Regarding Franchisee-Franchisor Relationships

MORE STORIES LIKE THIS