HomeBlogFranchising industry holds its breath as FTC takes a closer look at regulations

Franchising industry holds its breath as FTC takes a closer look at regulations

Last month, the Federal Trade Commission wrapped up a public comment period in response to its request for information on the sector and its business practices. The agency sought input from stakeholders, including franchise operators, workers and parent corporations, as it scrutinizes franchising practices.

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The move suggested the FTC is potentially considering closer regulation of the sector — with big implications for some of the largest restaurant and hospitality companies in the U.S. and their employees. The agency declined to comment on any potential changes or when they could come.

Now the industry awaits an outcome.

The FTC told CNBC it received more than 5,500 comments on the inquiry, indicating “broad interest in ensuring fairness in franchising.”

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