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The Giant Has Awoken: Franchisors in FTC’s Crosshairs

by | Apr 10, 2023 | Firm News, The Dady & Gardner Blog

In his April 2023, Franchising column in the New York Law JournalDady and Gardner, P.A. attorney, Ronald Gardner, analyzes the FTC Rule and reflects on his predictions on how the consequences of franchisor behavior would result in relationship and control changes between the franchisee and franchisor.

“From where I sit, the efforts to avoid any type of regulation will ultimately backfire. The overreach in the typical franchise agreement will cause a need for correction at some point, and as is the case with most corrections that come from legislation and regulation, over-correction is a real risk. Franchisors and their lawyers would be well advised to consider that as they continue to exert more and more control over their franchisees. See, Ronald K. Gardner, “Franchising from the Franchisee Lawyer Perspective,” Law.com, Sept. 27, 2019.

Almost four years ago (and a couple of times since then), I predicted in these very pages that if franchisors did not cease their endless attack on any effort to be regulated, even in the face of the most egregious conduct, the consequences might result in significant change in the regulations and legislation that control both the sale of franchises and the relationship between franchisors and franchisees. It appears that day may be at hand.”

– Ron Gardner

Read Ron’s entire article in the New York Law Journal on the choices, expansions, and developments franchisees may be experiencing by clicking here.

*NOTICE: This article is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this article.