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

Science, Wellness, Growth: How SweatHouz CEO Mike Tan is Shaping the Future of Contrast Therapy Franchising

mike-tan-franchising-strategy-sweathouz

Biscuit Belly Franchising

Biscuit Belly Expands Across the Southeast U.S. With Six New Locations

biscuit-belly-expands-across-the-southeast-us-with-six-new-locations

Layne's Chicken Fingers

Photo of exterior of Layne's Chicken Fingers restaurant

Layne’s Chicken Fingers Signs Landmark 44-Restaurant Deal, Shatters Records in Monumental Third Quarter

laynes-chicken-franchise-growth-records

Children's Lighthouse

Why Children’s Lighthouse Is a Great Opportunity for Swim School Franchisees

why-childrens-lighthouse-is-a-great-opportunity-for-swim-school-franchisees

Children’s Lighthouse Closes the Third Quarter with Record Franchise Signings and New School Opening

childrenslighthouse-q3-2025-growth

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

Amazon outage, AWS outage, Amazon AWS logo

The Day the Cloud Stalled: How Amazon's Outage Impacted Franchise Economy

amazon-aws-outage-franchise-impact-travel-dining-failure

Thursday 1851 Franchise Agg - NASAA’s Noncompete Push

NASAA’s Noncompete Push Puts Franchise Growth on Uncertain Ground

franchise-noncompete-nasaa-advisory-reasonableness-standard

How a Steady Economy Could Help Franchisors Plan Their Next Move

how-a-steady-economy-could-help-franchisors-plan-their-next-move

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

McDonald’s Is the Latest Franchise To Bet Big on Beverages with 500-Store Premium Drink Test

mcdonalds-is-the-latest-franchise-to-bet-big-on-beverages-with-500-store-premium-drink-test

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

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

right-at-home-franchise-las-cruces-jerome-hanway

graphic image of an 1851 franchisee spotlight brayden and johnny steven of teriyaki madness

Father-and-Daughter Team Bring Teriyaki Madness to Wichita, Kansas, With Big Expansion Plans

johnny-brayden-steven-teriyaki-madness-wichita

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

1851 Franchisee Spotlight graphic with photo of Barb Volk and KidStrong logo

Why This Orangetheory Fitness Franchise Owner Is Developing KidStrong Franchises

kidstrong-franchise-owner-barb-volk-2025

FTC Requests Public Comment Regarding Franchisee-Franchisor Relationships

MORE STORIES LIKE THIS