SBE Council Joins Business Allies in Support of Current Franchise Rule

By at 8 June, 2022, 8:28 am

Did you know that the first franchise systems were started in the colonies by Benjamin Franklin? This uniquely American model – which has gone global – currently supports 8.2 million jobs in the United States. There are more than 775,000 U.S. franchise businesses, with a 30.8% minority entrepreneurship rate.

Franchising has represented an efficient and profitable path to business ownership, and the current Franchise Rule plays an important role in sustaining certainty and the growth of franchising. The rule is currently undergoing a periodic decennial review by the Federal Trade Commission (FTC), and business organizations are using this opportunity to make clear that the franchise rule is working and has allowed franchise brands and franchise business owners to succeed together. The FTC has taken a more activist turn on many matters, and it is important that franchise advocates, owners and supporters engage to ensure that the rule stays “as is.” The FTC should not try – because there is no reason – to fiddle or fix something that is working extremely well.

SBE Council signed letters with business allies to let Congress know just that. In letters to Senate and House committee leaders, the letter states:

“The FTC Franchise Rule has created a more efficient franchising system that has expanded opportunities for entrepreneurs and workers of all backgrounds. While franchisors and franchisees may have different perspectives on the Rule’s individual items, we all support the Rule and encourage you to support the franchise model and the opportunities it presents.”


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