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International Franchise Association

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Many of you saw that on Friday, July 12, the Federal Trade Commission issued a series of policy statements impacting franchising – nearly a year and a half after its initial Request for Information on franchising.   Our view is these FTC statements largely reiterate current law and common contracting practices related to fee disclosures and confidentiality clauses. It appears the FTC is searching for a problem in franchising that simply doesn’t exist to satisfy their flawed hypothesis that franchising is unfair. IFA has long supported greater transparency and visibility in the franchise sales process, and this year we announced our Responsible Franchising policy recommendations, which we urge the FTC to adopt. We encourage open, candid communication among franchisors, franchisees, and federal and state regulators as a foundational component of healthy franchise relationships. We certainly denounce any retaliatory conduct intended to silence communication among stakeholders in the franchise community – although the notion that there is some systemic attempt throughout by franchisors to silence franchisees voices, as the FTC seems to insinuate, is a red herring and simply untrue.   It is our goal to ensure the FTC understands that franchising is working—for the benefit of small business owners, the workers they employ and the consumers they serve in communities across the country. The Commission should base its actions on facts and data, rather than ignoring both empirical data and the experiences that IFA members communicated to the Commission in their responses that the vast majority of franchise relationships are healthy and productive – experiences echoed by both franchisors and franchisees. We will continue to work with the FTC – and all those in franchising – to promote Responsible Franchising and rather than broad, sweeping government actions that could harm the entire model. To hear more of the IFA, franchisor, and franchisee perspectives on the FTC, join us for a web conversation with Michael Layman, Sarah Davies, J. Mark Dady and David Koch, “Making Sense of the FTC,” on July 25, 2024, at 11:00 ET on how we got here, what this means, and what happens next. Register here: https://lnkd.in/e6YWbCGf

Welcome! You are invited to join a webinar: Making Sense of the FTC. After registering, you will receive a confirmation email about joining the webinar.

Welcome! You are invited to join a webinar: Making Sense of the FTC. After registering, you will receive a confirmation email about joining the webinar.

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