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FTC Solicits Public Comments on Franchise Agreement Provisions and Franchisor Business Practices
By Beata Krakus on March 10, 2023 at 3:00 PM

The FTC on March 10 posted a solicitation for public comments on several questions relating to the relationship between franchisors and franchisees, as well as to franchisors’ involvement in certain franchisee employment matters and the relationship with third-party suppliers to franchisees. 

For example, the FTC is asking about:

  • Whether franchisors negotiate franchise agreements, and if so, what terms are negotiated;
  • Whether franchisors can make unilateral changes to the franchise relationship, for example through their operations manuals;
  • How franchisors restrict franchisee purchases of goods and services, as well as how common it is for franchisors to receive payments from third-party vendors based on franchisee purchases from the vendors;
  • How franchisors control wages and working conditions of franchisee employees; and
  • Whether franchisors market their franchises using other languages than English.

Franchisors, franchisees, and members of the public at large are encouraged to respond by May 9, 2023, by submitting written data, empirical research, views, facts and opinions. If you are a franchisor with questions about the FTC request or require assistance with preparing a response, please contact a member of Greensfelder’s Franchising & Distribution team.

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