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FTC Releases Franchise Rule Compliance Guides

By David W. Oppenheim
June 26, 2008

Perhaps you've heard: On Jan. 23, 2007, the Federal Trade Commission adopted the comprehensively revised FTC Franchise Rule ('The Amended Rule') and released the 'Statement of Basis and Purpose' ('SBP'), which clarified the Amended Rule's requirements and prohibitions. Compliance with the Amended Rule has been optional since July 1, 2007, and became mandatory on July 1, 2008.

As is the case with any comprehensive regulation, when substantial revisions (like in the Amended Rule) are enacted, there are countless issues regarding interpretation. While the comprehensive SBP that accompanied the Amended Rule clarifies many issues, particularly those not addressed under the original Rule or in the North American Securities Administrators Association ('NASAA') 1993 UFOC Guidelines, franchisors and practitioners have been searching for further guidance (at the federal level from the FTC and at the state level from NASAA) as the mandatory compliance date approaches.

Compliance Guide

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