The Federal Trade Commission is adjusting three monetary exemption thresholds for inflation in its Franchise Rule. The thresholds are used to determine whether the sale of a franchise qualifies for an exemption from the Rule. The Rule requires franchisors to disclose key information prospective buyers need to evaluate the risks and benefits of investing in a franchise.
The Rule requires the FTC to adjust the thresholds for inflation every four years based on the Consumer Price Index. The exemptions from compliance with the Rule which will take effect July 1, 2016, are:
The Commission vote approving the Federal Register Notice was 3-0. The Notice is available on the FTC’s website and as a link to this press release and will be published in the Federal Register soon. (FTC File No. P094400; the staff contact is Craig Tregillus, Bureau of Consumer Protection, 202-326-2970)
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.
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