Disclosure Requirements Concerning Franchising

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Franchise Rule 83-C.pdf	Justification for No Material/Nonsubstantive Change	Uploaded 2007-01-25	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
46498	Part 437 of Franchise Rule For Established Entities (Business Opportunity Sellers)		Removed
46496	Part 437 of Franchise Rule For New Entrants (Business Opportunity Sellers)		Removed
46494	Part 436 of Franchise Rule For Established Entities (Business Format Franchisors)		Unchanged
32310	Part 436 of Franchise Rule For New Entrants (Business Format Franchisors)		Unchanged

ICR Details

OMB Control No: 3084-0107	ICR Reference No: 200805-3084-002
Status: Historical Active	Previous ICR Reference No: 200612-3084-003
Agency/Subagency: FTC	Agency Tracking No:
Title: Disclosure Requirements Concerning Franchising
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 05/22/2008
Retrieve Notice of Action (NOA)	Date Received in OIRA: 05/13/2008
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2008	10/31/2008	10/31/2008
Responses	250,000	0	500,000
Time Burden (Hours)	19,500	0	36,250
Cost Burden (Dollars)	8,000,000	0	11,887,500

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Abstract: The Franchise Rule requires franchisors and franchise brokers to furnish a disclosure document to prospective franchisees prior to sale. Prospective franchisees use the information to become more informed about the proposed investment and to verify representations made by a franchisor.

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Authorizing Statute(s): None

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

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

table that charts list of burden

IC Title	Form No.	Form Name
Part 436 of Franchise Rule For Established Entities (Business Format Franchisors)
Part 436 of Franchise Rule For New Entrants (Business Format Franchisors)
Part 437 of Franchise Rule For Established Entities (Business Opportunity Sellers)
Part 437 of Franchise Rule For New Entrants (Business Opportunity Sellers)

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ICR Summary of Burden

table that charts list 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	250,000	500,000	0	-250,000	0	0
Annual Time Burden (Hours)	19,500	36,250	0	-16,750	0	0
Annual Cost Burden (Dollars)	8,000,000	11,887,500	0	-3,887,500	0	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: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The currently approved analysis and Paperwork Reduction Act (“PRA”) estimates under OMB Control No. 3084-0197, thus far covers both franchisors and business opportunity sellers. That clearance, however, encompasses a portion of disclosure requirements codified under a separate rule for sellers of non-franchise business opportunities. To more appropriately reflect their distinct, separate status and for clearer PRA administration, we seek to transfer into a newly assigned control number the inventoried totals strictly applicable to sellers of non-franchise business opportunities, leaving intact here the FTC's PRA estimates applicable to franchisors.

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Annual Cost to Federal Government: $0

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

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

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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: 05/13/2008

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