Contact: Jenna Weisbord, 310-995-0839
(WASHINGTON, FEB. 14) – The International Franchise Association (IFA) today released the following statement regarding the Federal Trade Commission’s (FTC) request for public comment on whether changes are needed to its Franchise Rule.
“The FTC Franchise Rule is the single most important government regulation affecting franchising. Its precepts underpin the franchise business model. By requiring clear and consistent disclosure of information at the outset of all franchise relationships, and through its evenhanded federal application, the existing rule allows for franchise brands and franchise business owners to succeed together.
“The rule was updated more than a decade ago following a 10-year-long, constructive, consensus-based process jointly led by franchisors and franchisees. That process worked, and the current FTC rule has led to a growing franchise economy with more than 733,000 locations who together employ nearly 8 million Americans.
“IFA supports the existing franchise rule, which represents the franchise sector’s interests and desire for thoughtful, fair regulation. Over the coming months, IFA will engage with its membership, policymakers, and regulators to ensure that this beneficial policy is extended,” said Robert Cresanti, IFA President and CEO.
Celebrating 56 years of excellence, education, and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology and business development.