We each have our pet peeves, and this thread has been grinding in my brain since I saw it yesterday. Above I stated I believe the article is in part a hit piece. In my corporate phase of life one of my responsibilities was to respond to media inquiries. In each case I learned that the stories were agenda driven and the offer of verifiable counter facts was either declined or ignored. To me that results in a story that is a lie either by omission or commission. This story appears to be likewise.
While I was reading/skimming it my brain was wondering why no commentary by the "reporter" about regulation of franchise processes. I did a quick query; Are franchise agreements regulated? Here's the response:
Franchise agreements are regulated at both the federal and state levels in the United States. The Federal Trade Commission (FTC) through its FTC Franchise Rule sets the baseline requirements for franchisors, while various states have their own franchise registration and disclosure laws. These laws ensure that franchisors comply with specific regulations to protect both franchisors and franchisees. Key aspects of franchise regulation include:
While I was reading/skimming it my brain was wondering why no commentary by the "reporter" about regulation of franchise processes. I did a quick query; Are franchise agreements regulated? Here's the response:
Franchise agreements are regulated at both the federal and state levels in the United States. The Federal Trade Commission (FTC) through its FTC Franchise Rule sets the baseline requirements for franchisors, while various states have their own franchise registration and disclosure laws. These laws ensure that franchisors comply with specific regulations to protect both franchisors and franchisees. Key aspects of franchise regulation include:
- Franchise Disclosure Document (FDD): Franchisors must provide prospective franchisees with a FDD containing detailed information about the franchisor's business and the terms of the franchise agreement. The FDD must be provided at least 14 days before the franchise agreement is signed.5
- State Laws: Many states have their own franchise laws, often referred to as "Little FTC Acts," which impose additional requirements on franchisors. These laws may require registration of the FDDs and compliance with state-specific regulations.6
- Business Opportunity Laws: Some states have business opportunity laws that extend the disclosure protections afforded to franchisees and consumers who purchase business opportunities, including franchises.1 Understanding and complying with these regulations is









Comment