Last updated more than a decade ago, the Federal Trade Commission (FTC) is in the process of their decennial review of the “Franchise Rule” that requires franchisors to provide potential franchisees with a franchise disclosure document (FDD) containing information about the offered franchise and the overall franchise system. This affords current and prospective franchise owners with the information they need to weigh the risks and benefits of a such a business investment.
NAR recently signed a coalition letter to the Housepdf and Senatepdf in support of the franchise model, which promotes business ownership and economic growth, with the help of clear and consistent disclosure of information at the outset of the franchise relationship as outlined in the current rule. Stay tuned to nar.realtor for the latest information.