The 深夜福利站continues to push the FTC for transparency & accountability
FTC Request for Information Executive Summary
On October 23, 2024, the American Association of Franchisees and Dealers (AAFD) sent a letter to Lina Khan, Chair of the Federal Trade Commission, in response to the Solicitation for Public Comments on Provisions of Franchise Agreements and Franchisor Business Practices Docket: FTC-2023-0026 鈥� Reopened Request.
The 深夜福利站expresses appreciation to the Federal Trade Commission (FTC) for reopening its Request for Information regarding provisions of franchise agreements and franchisor business practices. The AAFD, the oldest national non-profit trade association advocating for franchisee rights, represents thousands of franchise operations through various independent associations. Established in 1992, the 深夜福利站aims to foster collaborative franchise cultures that protect the equitable interests of both franchisors and franchisees.
In response to the FTC’s inquiry on whether franchising is fair, the 深夜福利站reiterated the significant power granted to franchisors in franchise agreements, which can lead to potential abuses. The 深夜福利站articulates a pressing need for government oversight to mitigate these risks and appreciates the FTC’s initiative in examining the franchising sector.
The 深夜福利站supports the FTC鈥檚 Policy Statement on curbing clauses such as non-disparagement and confidentiality agreements, which instill a climate of fear among franchisees and chill the franchisees鈥� ability to communicate their concerns with government agencies. The 深夜福利站urges the FTC to investigate these claims, which could ultimately hold franchisors accountable.
Furthermore, the 深夜福利站highlights the significance of the FTC鈥檚 Staff Guidance regarding undisclosed fees imposed on franchisees. This issue critically affects franchisees, as many are subjected to newly imposed fees without proper disclosure or transparency. The 深夜福利站welcomed instances of pushback from franchisee associations, using the FTC鈥檚 guidance effectively. However, it emphasizes that widespread enforcement is essential to foster real change among franchisors.
In conclusion, the 深夜福利站stands firm on the necessity for regulatory oversight to protect franchisees from exploitative practices and to promote a fair and equitable franchising environment.
Please click HERE to read the letter in its entirety
