Franchising Is A Fast Growing Commerce With One Opening Every Eight Seconds But Dangers Lurk – Apparently Especially For McDonald’s Franchise Owners
From carpet cleaning service and pool halls to bouncy house rentals and wildlife control companies, franchising is a growing business in the US. According to Financial Times, if sales by U.S. franchise businesses were translated into national product, they would qualify as the 7th largest economy in the world.
For the first time in nearly 30 years the Federal Trade Commission has revamped their regulations designed to rein in unruly franchisers.
“There are so many options — nearly 900 new concepts in the past three years, according to the industry — that picking the right one can be daunting,” wrote Richard Gibson of Dow Jones newswires. “Moreover, information about varying franchises is often inconsistent.”
Now, the government wants to help. The Federal Trade Commission is calling for greater disclosure by franchisers. A primary intent is to ensure that prospective franchisees “avoid harm” in their shopping, the FTC said in publishing the revisions, which would become mandatory next year.
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