F.T.C. Public Comment 60

These provisions clearly violate the spirit of federal and state due process constitutional law. I would also be in favor of eliminating the FTC Franchise Rule. I support the provision that would require the franchisor to disclose earnings information prior to investing in a franchise.

FTC.jpg

U.S. Federal Trade Commission
April 29, 1997

Public Comment
K.F.C. of Pollys

Request for public comment on possible revisions to The Franchise Rule.

Comment #60

April 29, 1997

Secretary, Federal Trade Commission
Room 159,
Sixth Street and Pennsylvania Avenue, N.W.
Washington, D.C. 20580

RE: 16 CFR Part 436

Dear Secretary:

Pursuant to a bulletin issued regarding the above mentioned FTC Rule change, as a Kentucky Fried Chicken Franchisee and a member of the American Franchisee Association I would like to offer the following comments.

I believe that it is in the best interest of free enterprise and small business that the FTC prohibit
franchisors from:

-requiring outgoing franchisees to sign confidentiality statements or gag orders;

-requiring current, renewing and outgoing franchisees to sign general releases and
waivers;

-requiring prospective and renewing franchisees to agree to the venue and
applicable law of the franchisor's home state;

-requiring prospective and renewing franchisees to give up their rights to a jury trial
by mandating arbitration;

-requiring franchisees to sign contracts that contain integration clauses which
specifically allow franchisors to avoid the Franchise Rule or state law; and

-requiring franchisees to sign post-term covenants not-to-compete.

These provisions clearly violate the spirit of federal and state due process constitutional law. I would also be in favor of eliminating the FTC Franchise Rule. I support the provision that would require the franchisor to disclose earnings information prior to investing in a Franchise.

Very truly yours,

K.F.C. of Pollys
14325 Iseli road
Santa Fe Springs, CA 90670
(310) 921-5210

For Review, see FTC “Table of Commenters”
http://www.ftc.gov/bcp/franchise/comments/tabcomm.htm


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Risks: F.T.C. Public Comments, United States, 1997, American Franchisee Association, AFA, Ban gag orders, Ban waivers of legal rights, Disputes heard on franchisor’s home turf, Mandatory arbitration (no trial), Integration clauses, Non-compete restrictions, Abolish the FTC Rule
, United States, 19970429 Comment 60

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