FRANCHISE LAW RESOURCES
An overview of the FTC Franchise Rules, federal disclosure requirements, and important resources for franchisors.
Understanding Federal Franchise Law
The Federal Trade Commission (FTC) implements and enforces federal franchise disclosure requirements governing the offer or sale of franchises in the United States. Under the FTC Franchise Rule, a franchise relationship generally involves three elements:
Use of the franchisor’s trademark or other commercial symbol in connection with the business.
Significant control over, or significant assistance to, the franchisee’s method of operation.
A required payment to the franchisor or an affiliate. The Rule has a minimum-payment exemption, with a $735 threshold for the first six months.
The label used for a business relationship does not determine whether it is a franchise. See also the difference between Franchising and Licensing.
NASAA- Franchise Registration and Disclosure Guidelines
NASAA- Commentary on 2008 Franchise Registration and Disclosure Guidelines
NASAA- Franchise Commentary Financial Performance Representations
NASAA- New Franchise State Cover Sheets Instructions
NASAA- Disclosing Financial Performance Representations in the Time of COVID-19
NASAA- Franchise Questionnaires and Acknowledgments Statement of Policy
NASAA- Impact of Shifting Market and Economic Factors on Franchise Disclosures
