FTC Keeps Franchise Info Rules for Three More Years
Published Date: 5/5/2026
Notice
Summary
The Federal Trade Commission wants to keep its rules for franchise businesses for three more years, making sure franchise buyers get all the important info they need before investing. This affects businesses that sell franchises and involves about $13 million in yearly costs. If you have thoughts, you’ve got until July 6, 2026, to share them!
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Per-franchisor labor burden and cost
If you already sell franchises, the FTC estimates updating your Franchise Disclosure Document takes about 3 hours per year and costs about $1,350 (3 hours × $450/hour). If you are a new franchisor, preparing the disclosure is estimated at about 30 hours and $13,500 (30 hours × $450/hour); the FTC estimates 240 new sellers annually.
Industry annual compliance cost: $13.2M
If you sell franchises, the FTC estimates that franchisors collectively incur $8,400,040 in annual labor costs plus $4,800,000 in annual non-labor costs, for a total estimated industry cost of $13,200,040 each year. The FTC estimates this burden covers about 4,000 sellers of franchises.
Disclosure distribution non-labor costs
If you distribute Franchise Disclosure Documents, the FTC estimates franchisors send about 400,000 disclosures annually. It estimates 320,000 are electronic at $5 each ($1,600,000) and 80,000 are hard copy at $40 each ($3,200,000), for total estimated annual non-labor costs of $4,800,000.
Recordkeeping requirement and clerical cost
If you sell franchises, the Rule requires you to maintain materially different copies of your Franchise Disclosure Document and related records (preserve for 3 years). The FTC estimates this recordkeeping takes about 1 hour per franchisor per year (4,000 hours total) at an estimated clerical rate of $21.01/hour, totaling $84,040 in annual labor costs.
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Key Dates
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Previous / Next Documents
Previous: 2026-08685, Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
The Federal Trade Commission wants to keep collecting feedback on how well it serves people and businesses for three more years. This helps them improve websites, videos, and other helpful info without adding extra paperwork. If you’re affected, you can share your thoughts by July 6, 2026, with no cost involved.
Next: 2026-08687, PCM Fund, Inc., et al.
PCM Fund and several PIMCO investment funds want permission to team up and invest together in the same companies, which usually isn’t allowed. If the SEC agrees, these funds can share investment opportunities, potentially boosting their money-making power. People can ask for a hearing about this by May 25, 2026, but if no one objects, the order will go through.