2026-16827NoticeWallet

FTC Wants Three More Years of Franchise Paperwork

Published Date: 8/18/2026

Notice

Summary

The Federal Trade Commission (FTC or Commission) requests that the Office of Management and Budget (OMB) extend for three years the current Paperwork Reduction Act (PRA) clearance for its Trade Regulation Rule on Disclosure Requirements and Prohibitions Concerning Franchising (Franchise Rule or Rule). The current clearance expires on August 31, 2026.

Analyzed Economic Effects

4 provisions identified: 0 benefits, 4 costs, 0 mixed.

Franchisors Must Give Franchise Disclosure

If you sell franchises, you must give every prospective purchaser a Franchise Disclosure Document (FDD) that describes the franchisor, its business, the proposed franchise, and any statements about financial performance. The Rule requires this disclosure so prospective buyers can compare franchise offerings.

Written Basis Required for Financial Claims

If a franchisor makes any financial performance representation about sales, income, or profits, the franchisor must have written information that provides a reasonable basis for that representation. This means franchisors must document support for any earnings claims they make to prospects.

Estimated Annual Burden and Cost to Businesses

The FTC estimates the Rule imposes 22,480 annual burden hours on private-sector businesses, with estimated annual labor costs of $8,403,680 and estimated annual non-labor costs of $4,800,000. The FTC is seeking OMB approval to extend the existing Paperwork Reduction Act clearance for three years.

Three-Year FDD Record Preservation Requirement

Franchisors must preserve materially different copies of their Franchise Disclosure Documents (FDDs) for 3 years. The Rule also requires franchisors to maintain records to help enforcement of the Rule.

Personalized for You

How does this regulation affect your finances?

Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Key Dates

Published Date
Comments Due
8/18/2026
9/17/2026

Department and Agencies

Department
Independent Agency
Agency
Federal Trade Commission
Source: View HTML

Related Federal Register Documents

Previous / Next Documents

Back to Federal Register