Disclosure Requirements Concerning Franchising

Forms and Documents

Document Name	Status
Franchise Rule SS '08.fin_mtd.pdf Supporting Statement A	2008-10-03

IC Document Collections

IC ID	Document Title	Status
46494	Franchise Rule For Established Entities (Business Format Franchisors)	Modified
32310	Franchise Rule For New Entrants	Modified
186823	Franchisors printing & mailing 1/2 of their disclosure documents	New
186822	Franchisors electronically transmitting 1/2 of their disclosure documents	New
186821	Franchisors solely printing & mailing disclosure documents	New

ICR Details

OMB Control No: 3084-0107	ICR Reference No: 200810-3084-003
Status: Historical Active	Previous ICR Reference No: 200805-3084-002
Agency/Subagency: FTC	Agency Tracking No:
Title: Disclosure Requirements Concerning Franchising
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/17/2008
	Date Received in OIRA: 10/14/2008
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2011	36 Months From Approved	12/31/2008
Responses	252,500	0	250,000
Time Burden (Hours)	16,750	0	19,500
Cost Burden (Dollars)	8,000,000	0	8,000,000

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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): 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:
	73 FR 40580	07/15/2008
30-day Notice:	Federal Register Citation:	Citation Date:
	73 FR 60696	10/14/2008
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 5

IC Title	Form No.	Form Name
Franchisors printing & mailing 1/2 of their disclosure documents
Franchisors electronically transmitting 1/2 of their disclosure documents
Franchise Rule For New Entrants
Franchise Rule For Established Entities (Business Format Franchisors)
Franchisors solely printing & 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	250,000	0	2,500	0	0
Annual Time Burden (Hours)	16,750	19,500	0	-2,750	0	0
Annual Cost Burden (Dollars)	8,000,000	8,000,000	0	0	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 current burden estimate excludes the 2,750 additional hours attributed in the 2005 clearance request to the transition to the amended Rule’s disclosure requirements. That transition was completed when the amended Rule took full effect on July 1, 2008.

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Annual Cost to Federal Government: $120,000

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: 10/14/2008

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