FTC Extends Comment Period on RFI Related to Franchise Agreements and Business Practices to Oct. 24

The Federal Trade Commission has extended by two weeks the deadline for members of the public to comment in response to the agency’s Request for Information (RFI) on franchise agreements and franchisor business practices, including how franchisors may exert control over franchisees and their workers.

Due to the impact of Hurricane Milton and Hurricane Helene, the FTC is extending the original October 10, 2024 deadline for public comment until October 24, 2024. Information on how to submit comments can be found online at regulations.gov.

In July 2024, the FTC released a policy statement and guidance warning that franchisor contract provisions that cut off communications with the government and undisclosed junk fees are unlawful. To ensure continued engagement with all market participants, the FTC announced it was reopening its 2023 RFI on franchise agreements and business practices. In particular, the agency expressed interest in learning 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.