FTC Rules

Federal Trade Commission (FTC)
By rmower | June 2, 2011

There is a lot to learn about franchising, especially if you are new to the topic. In order to help you get better acquainted with franchising, we will periodically be posting some helpful terms for you to get to familiarize yourself with as you begin to explore different franchise opportunities.

Federal Trade Commission (FTC): The FTC is a federal agency in Washington, DC that protects consumers against unfair or deceptive practices. In the franchising world, the FTC regulates various trade practices to help franchisees stay protected. They enforce the Franchise Rule, which ensures that franchisees are getting certain information from the franchisors so that they can make an educated and informed decision when considering what franchise to purchase. Because prospective franchisees can risk economic injuries, the FTC works to create a level playing field for people who are looking to invest in a franchise. Their website has a plethora of useful information and laws for the prospective franchisee.

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