Disclosure Requirements Concerning Franchising

Forms and Documents

Document Name	Status
2020 Franchise Rule Supporting Statement.pdf Supporting Statement A	2020-10-02

IC Document Collections

IC ID	Document Title	Status
46494	Franchise Rule Disclosure and Recordkeeping For Established Entities	Modified
32310	Franchise Rule Disclosure and Recordkeeping For New Entrants	Modified
186823	Franchisors printing & mailing 1/2 of their disclosure documents	Removed
186822	Capital/Non-Labor Cost for Electronic Distribution of Disclosure Documents	Modified
186821	Capital/Non-Labor Cost for Printing and Mailing Disclosure Documents	Modified

ICR Details

OMB Control No: 3084-0107	ICR Reference No: 202006-3084-001
Status: Active	Previous ICR Reference No: 201708-3084-001
Agency/Subagency: FTC	Agency Tracking No:
Title: Disclosure Requirements Concerning Franchising
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 11/16/2020
	Date Received in OIRA: 10/02/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2023	36 Months From Approved	11/30/2020
Responses	252,500	0	252,500
Time Burden (Hours)	16,750	0	16,750
Cost Burden (Dollars)	7,250,000	0	8,000,000

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Abstract: The Federal Trade Commission ("FTC") seeks renewed clearance for the the information collection requirements in its Disclosure Requirements Concerning Franchising ("Franchise Rule"). The Franchise Rule requires franchisors and franchise brokers to furnish a disclosure document to prospective franchisees prior to sale. Prospective franchisees use this information to become better informed about their potential investment and to verify representations made by a franchisor.

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Authorizing Statute(s): US Code: 15 USC 41-58 Name of Law: Federal Trade Commission Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 19479	04/07/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 62303	10/02/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Franchisors printing & mailing 1/2 of their disclosure documents
Capital/Non-Labor Cost for Electronic Distribution of Disclosure Documents
Franchise Rule Disclosure and Recordkeeping For New Entrants
Franchise Rule Disclosure and Recordkeeping For Established Entities
Capital/Non-Labor Cost for Printing and Mailing Disclosure Documents

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	252,500	252,500	0	0	0	0
Annual Time Burden (Hours)	16,750	16,750	0	0	0	0
Annual Cost Burden (Dollars)	7,250,000	8,000,000	0	0	-750,000	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement:

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Annual Cost to Federal Government: $120,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 10/02/2020

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