FTC announces Request for Information on Franchising

By Published On: March 16th, 2023

AAFD has been raising the red flag to the federal government and their associated agencies for since AAFD’s inception in on the inequities in the franchisor and franchisee relationship. The power imbalance and, at times, blatant disregard for franchisees, has been evident across all franchise industries. This time, we have have a chance to have our voices heard. The FTC has opened the door and wants to hear from you. We encourage all chapter members and franchisee friends of chapter members to get involved. AAFD will be providing assistance but it’s time to start thinking of the issues that have directly impacted you. We need you to help change the industry and create fair policies for all involved.

AAFD Statement on Federal Trade Commission’s ‘Solicitation for Public Comments on Provisions of Franchise Agreements and Franchisor Business Practices’:

“The AAFD applauds the FTC’s ‘Solicitation for Public Comments on Provisions of Franchise Agreements and Franchisor Business Practices.’ We are encouraged by the effort to include the fairness of contract terms and looking at post and presale disclosure issues, including the proliferation of kickbacks driving up costs to franchisees. We fully support this effort, will submit comments, and will assist our chapters and franchisees in providing meaningful comments relative to their brands,” said chief executive officer and chairman, Robert Purvin, and Keith Miller, Director of Public Affairs and Engagement, in a joint statement.

Background: The Federal Trade Commission has begun reviewing policies to protect franchisees from this power imbalance in recent years. Currently, Federal Trade Commission is reviewing the Franchise Rule. In addition, the Government Accountability Office will soon be releasing a report looking at franchise issues.

Watch this important video of FTC Commissioner, Rohit Chopra, at our 2021 Virtual AAFD Summit.

FTC Commissioner, Rohit Chopra appears on:  4:10 (key/time frame)

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The AAFD is a national non-profit trade association representing the rights and interests of franchisees and independent dealers throughout the United States. The AAFD’s mission is to achieve Total Quality Franchising We do this by promoting fair and equitable franchising and dealer practices and empowering effective independent franchise associations.  We also provide members with programsservices and products which enhance their individual businesses and careers.  

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