FTC Adjusts Monetary Thresholds for Three Exemptions in Franchise Rule

The Federal Trade Commission is adjusting three monetary exemption thresholds for inflation in its Franchise Rule.

Metadata
Provider: 
FTCFTC
URL: 
https://www.ftc.gov/news-events/press-releases/2020/06/ftc-adjusts-monetary-thresholds-three-exemptions-franchise-rulehttps://www.ftc.gov/news-events/press-releases/2020/06/ftc-adjusts-monetary-thresholds-three-exemptions-franchise-rule
Retrieved on: 
Wednesday, June 3, 2020
Information
Tags: 
Contract law, Franchising, Franchise Rule, Corporate crime, Private law, Economy, Inflation, Federal Trade Commission, Consumer price index, Law, Franchise disclosure document
Summary
Key Points: 
  • 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.
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