Disclosure Requirements and Prohibitions Concerning Franchising

The Federal Trade Commission (the ``Commission'' or ``FTC'') amends its Trade Regulation Rule entitled ``Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures'' (``Franchise Rule'' or ``Rule'') to streamline the Rule, minimize compliance costs, and to respond to changes in new technologies and market conditions in the offer and sale of franchises. Part 436 sets forth those amendments to the Franchise Rule pertaining to the offer and sale of franchises. Part 437 sets forth a revised form of the original Franchise Rule pertaining solely to the offer and sale of business opportunities. This document provides background on the Franchise Rule and this proceeding; discusses the public comments the Commission received; and describes the amendments the Commission is making based on the record. This document also contains the text of the final amended Rule and the Rule's Statement of Basis and Purpose (``SBP''), including a Regulatory Analysis.

Agency Contact: Steven Toporoff, (202) 326-3135, Division of Marketing Practices, Room 286, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, D.C. 20580.