FTC Seeks Public Comment on Franchisors Exerting Control Over Franchisees and Workers

Share This Post

The Federal Trade Commission requests comment on franchise agreements and franchisor business practices, including how franchisors may exert control over franchisees and their workers.

In a franchise relationship, franchisees typically pay a fee in exchange for a business format or system developed by a franchisor, the right to use the franchisor’s trademark for a specific number of years, and assistance. Owning a franchise, however, comes with defined costs, franchisor controls, and contract terms.

The FTC would like to know more about how franchisors may exert control over franchisees and their workers. Specifically, the FTC is interested in how franchisors disclose certain aspects and contractual terms of the franchise relationship, as well as the scope, application, and effect of those aspects and contractual terms. 

“Amidst growing concern around unfair and deceptive practices in the franchise industry, the FTC hopes to hear from a broad range of stakeholders about how the franchise relationship is working, and how it is not,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “This cross-agency effort will inform our policy and enforcement efforts as we work to ensure a fair marketplace for franchisees.”  

“It’s clear that, at least in some instances, the promise of franchise agreements as engines of economic mobility and gainful employment is not being fully realized,” said Elizabeth Wilkins, Director of the FTC’s Office of Policy Planning. “This RFI will begin to unravel how the unequal bargaining power inherent in these contracts is impacting franchisees, workers, and consumers.”

As part of the Request for Information, the FTC is asking franchisors, franchisees, current and past employees of franchisors and franchisees, government entities, economists, attorneys, academics, consumers, and other interested parties to weigh in on a wide array of issues that affect franchisees and their workers, such as:

  • franchisees’ ability to negotiate the terms of franchise agreements before signing, and the ability of franchisors to unilaterally make changes to the franchise system after franchisees join;
  • franchisors’ enforcement of non-disparagement, goodwill or similar clauses;
  • the prevalence and justification for certain contract terms in franchise agreements;
  • franchisors’ control over the wages and working conditions in franchised entities, other than through the terms of franchise agreements;
  • payments or other consideration franchisors receive from third parties (e.g., suppliers, vendors) related to franchisees’ purchases of goods or services from those third parties;
  • indirect effects on franchisee labor costs related to franchisor business practices; and
  • the pervasiveness and rationale for franchisors marketing their franchises using languages other than English.

The public will have 60 days to submit comments at Regulations.gov. Once submitted, comments will be posted to Regulations.gov.

Apart from this Request for Information, the FTC is seeking public comment on a proposed rule to ban noncompete clauses for workers in some situations. As part of that proposed rulemaking, the FTC is interested in public comments on the question of whether that proposed rule should also apply to noncompete clauses between franchisors and franchisees. Comments related to the use of noncompete restrictions in franchise agreements should be submitted as part of the noncompete rulemaking through April 19, 2023. This Request for Information is separate from the noncompete rulemaking proceeding. Similarly, this Request for Information is separate from the Franchise Rule regulatory review. Any comments submitted in response to this Request for Information will not automatically become part of either the noncompete rulemaking proceeding or the Franchise Rule regulatory review record. 

The lead staff attorneys on this matter are Christine M. Todaro and Josh Doan from the FTC’s Bureau of Consumer Protection and Alex Petros from the FTC’s Office of Policy Planning.

Official news published at https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-seeks-public-comment-franchisors-exerting-control-over-franchisees-workers

Related Posts

RedeemTV Announces New Documentary: ‘The Shroud Face to Face’

RedeemTV Announces New Documentary: ‘The Shroud Face to Face’
Company Logo

RedeemTV ? Streaming Goodness

Vision Video’s streaming platform RedeemTV is set to unveil the highly anticipated documentary The Shroud Face to Face on March 28, 2024.

The Shroud Face to Face, produced by The Nexus Institute and The Shroud LLC, is a captivating documentary that unravels the enigma of the Shroud of Turin. With cutting-edge technology and expert insights, the film provides a face-to-face encounter with this iconic relic, inviting audiences to delve into its history, authenticity, and the profound questions it raises.

This visually stunning film, based on the book The Shroud Face to Face by acclaimed author and filmmaker Robert Orlando, offers an immersive exploration of the centuries-old mystery surrounding the Shroud of Turin and has been endorsed with high praise.

"This is a compelling and convincing account of the single most fascinating relic in the Christian world. This is for anyone seeking to understand the significance and history of the Shroud of Turin.” — Bishop Robert Barron, founder of Word on Fire

'The Shroud Face to Face'

Watch Trailer: https://watch.redeemtv.com/trailer/the-shroud-trailer

RedeemTV is a FREE, donor-supported, Christian streaming platform with over 250,000 subscribers. Streaming more than 5,000 videos, it provides family-friendly content while continuing to spread the message of Jesus.

Vision Video is a leading DVD and film distributor, committed to bringing impactful and compelling stories to audiences worldwide. With a focus on cinematic excellence, Vision Video partners with filmmakers to showcase thought-provoking narratives that inspire and captivate.

The Nexus Media focuses on TV, motion pictures, books, and screenplays, along with award- winning documentaries and shorts. Our team has years of experience in media storytelling and developing well-crafted engaging content. We invite you to view some of our past projects, The Divine Plan and Silence Patton, and participate in our new initiatives.

Stream FREE on RedeemTV: https://redeemtv.com.

Find us on Facebook at https://www.facebook.com/RedeemTV.

Follow us on Instagram at https://www.instagram.com/redeemtv1.

Contact Information:
Danielle Tumminelli
Marketing & VOD Distribution Manager
danielle@visionvideo.com
484-750-2485


Original Source: RedeemTV Announces New Documentary: 'The Shroud Face to Face'

Scholars of Mandeville Grand Opening to Feature New Orleans Saints Superstar Cam Jordan

Scholars is celebrating the Grand Opening of its second tutoring location in the Greater New Orleans area Thursday, March 28th. This Thursday's event features NFL superstar Defensive End Cam Jordan of the New Orleans Saints. Cam, the Saints all-time sack leader and 8x pro-bowler, will be available to meet and inspire the students and families of the Mandeville community.

Scholars of Mandeville Grand Opening to Feature New Orleans Saints Superstar Cam Jordan
Scholars Logo

Scholars is an award-winning franchise tutoring system, providing broad academic support to students K-12 in all subjects.

This Thursday, March 28th, Scholars will celebrate the grand opening of its new location in Mandeville, Louisiana. The event begins at 11:30 a.m. and will take place at 1901 U.S. Hwy 190, STE 27, Mandeville, La.

Scholars is proud to be cutting the ribbon of its second location in New Orleans. This week’s event will also feature some NFL star power as Cam Jordan of the New Orleans Saints will be making an appearance. Renowned throughout the NFL for his ferocious and creative pass-rushing, Cam, the Saints all-time sack leader and 8x pro-bowler, is both a student of the game of football and a big believer in the importance of education off the field. Cam will meet and inspire the students and families of the community alongside Scholars CEO Matt Baxter and other special guests. 

The event is free to attend and will feature giveaways, food from local vendors, face painting, pictures, games, and other surprises.

Scholars of Mandeville owner Ryan Fitzsimmons is excited to give back to his community and to provide students in the area with world-class tutoring. “I’m always willing and able to help kids,” Fitzsimmons said. “I’m a huge believer in Scholars because I’ve seen it work. It’s really amazing and I’m excited to be a part of it.” 

Scholars' first Louisiana location was opened in 2021 by another NFL star, 5x Pro Bowl Offensive Tackle Terron Armstead. Scholars of New Orleans has brought the joy of success in school to hundreds of students over the past three years and provides the template which Ryan Fitzsimmons seeks to follow.

Scholars, which is celebrating its 25th anniversary in 2024, has over 80 locations across North America. It uses its world-class curriculum and programming coupled with qualified, caring teachers to provide exceptional tutoring services for students of all ages. It has won the Canadian Franchise Association’s Franchisees’ Choice Award for nine consecutive years, while also boasting the Franchisee of the Year Award in 2023. The first location in the United States was opened in Brookhaven, Georgia, by Baltimore Ravens great Jamal Lewis, and the company also includes local New Orleans legend & former Saints superstar Mark Ingram. 

Scholars Education                                                         

400 Applewood Cres, Suite 100

Toronto ON, L4K 0C3

1-866-777-2131

info@scholarscanada.com

Contact Information:
Peter Dyakowski
Scholars Education
peter@scholarsed.com
1-888-901-7323
Related Images
Scholars Logo
Scholars Logo

Scholars is an award-winning franchise tutoring system, providing broad academic support to students K-12 in all subjects.

Cam Jordan
Cam Jordan

New Orleans Saints Defensive End Cam Jordan 8x NFL Pro Bowl Appearances



Original Source: Scholars of Mandeville Grand Opening to Feature New Orleans Saints Superstar Cam Jordan

Refrigerants Market Size, Share And Growth Analysis For 2024-2033

Refrigerants Global Market Report 2024...
green agriculture project
- Part of VUGA Media group -best seo company