The Federal Trade Commission (FTC) has extended the deadline for public comments on its Request for Information (RFI) regarding franchise agreements and franchisor business practices. Originally set for October 10, 2024, the new deadline is now October 24, 2024. This extension comes in response to disruptions caused by Hurricane Milton and Hurricane Helene.
The FTC seeks input on how franchisors may exert control over franchisees and their workers. Details on submitting comments are available at regulations.gov.
In July 2024, the FTC issued a policy statement highlighting concerns about certain franchisor contract provisions. These include clauses that prevent communication with government entities and undisclosed fees deemed unlawful. The agency reopened its 2023 RFI to gather more insights into how franchisors disclose aspects of the franchise relationship and related contractual terms.
The FTC continues to develop policies affecting competition, consumers, and the U.S. economy. It emphasizes that it will never demand money or make threats. Updates from the FTC can be accessed through social media channels, consumer alerts, and its business blog.