March 2007
An Overview of the New FTC RuleOn Jan. 22, 2007, after more than a decade of study, the FTC released its long-anticipated new Federal Trade Commission Rule on Franchising (the “New Rule”). The New Rule comes into effect on a voluntary basis on July 1, 2007, with compliance becoming mandatory on July 1, 2008. Additional compliance guides are expected by July 1, 2007. Franchisors will have to make significant changes to their existing disclosure documents and follow new rules for how and when they are delivered to prospective franchisees.
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