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Ftc franchise rule
The Amended FTC Franchise Rule
... Recently, the FTC amended its old FTC Rule, which it had not touched since the 1970s, to create the amended FTC Franchise Rule (“Amended Rule”). All franchisors offering and selling franchises in the U.S. had to convert their old disclosure documents to the new franchise disclosure document or FDD format required under the Amended Rule by July 1, 2008. There were several changes from the old FTC Rule and UFOC Guidelines to the Amended Rule. The Amended Rule provides clarification, and flexibility, as to the method or media of disclosure. Most importantly, the Amended Rule requires a franchisor to disclose annually in Item 3 all franchisor-initiated litigation involving the franchise relationship filed during the previous fiscal year. It is important to note that the Amended Rule will not preempt state franchise laws, except to the extent these laws are inconsistent with the Amended Rule, such as registration of disclosure documents or more extensive disclosures. ...
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