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GAO Report: Examining FTC’s Oversight of Franchising

By Published On: April 19th, 2023

To gain insight into the challenges franchisee owners face, the Government Accountability Office (GAO) was asked to review the FTC’s oversight of franchising.

As part of this review, GAO an independent, nonpartisan agency that conducts research for Congress about how the federal government spends taxpayer dollars and how well government programs and policies are meeting their objectives released their report on the FTC’s oversight of franchising. Last year, the GAO attended the AAFD Franchisee Leadership Summit on September 10-13 in Mesa Arizona and conducted a series of focus groups with franchise owners, hearing directly from them about their experiences and opinions related to franchising laws and regulations. In addition, the GAO reviewed laws and regulations related to franchising, along with FTC data and documentation on franchise related complaints and investigations. GAO conducted nine discussion groups with 44 franchise owners, selected to represent a variety of industry types. GAO also interviewed FTC officials and 25 franchising stakeholders (attorneys, trade association representatives, and franchisors).

From this blog post, it is clear that further action is necessary to ensure franchisee rights are safeguarded, which is why we urge our readers to stay informed and join us in advocating for fair franchising and tangible reforms that will help make an impact on the current state of the franchising industry.

READ GAO FULL ARTICLE: Franchising is an Attractive Business Opportunity, But Not Without Challenges

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Written by : AAFD

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.