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

Comfort Keepers

Comfort Keepers - Midyear Press Release 2025 - 1851 Franchise

Comfort Keepers® Hits Mid-Year Stride With Strong Franchise Growth and Rising Demand for In-Home Care

comfort-keepers-franchise-midyear-momentum-2025

petbar

petbar - Garrett Dewan - Why I'm Investing - 1851 Franchise

Why Garrett Dewan Is Choosing To Reinvest in petbar

petbar-franchise-austin-garrett-dewan-multi-unit

Paris Baguette

NJBIZ: Paris Baguette Ramps Up Expansion With New Franchises, Facility and 2030 Growth Target

njbiz-paris-baguette-ramps-up-expansion-with-new-franchises-facility-and-2030-growth-target

Busy Bee Jumpers

Top 10 Reasons To Buy a Busy Bee Jumpers Franchise in 2025

top-10-reasons-to-buy-a-busy-bee-jumpers-franchise-in-2025

Home Halo

home-halo-former-athletes-frachisees-image

Why Former College Athletes Can Make Winning Home Halo Franchise Owners

former-college-athletes-home-halo-franchise

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

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

FTC Requests Public Comment Regarding Franchisee-Franchisor Relationships

MORE STORIES LIKE THIS