What rules apply to ads for franchises or business opportunities?
The FTC’s Trade Regulation Rule on Franchises and Business Opportunities (“Franchise Rule”) governs the sale of franchises and business opportunities. The law requires sellers to make specific disclosures, give prospective buyers a document containing certain key information about the business opportunity, and be able to substantiate any earnings claims. For more information about buying or selling franchises and business opportunities, see the Franchise Rule. In addition, many states have laws governing these transactions. Check with the attorney general’s office in the states where you plan to advertise. The phone numbers are in the Consumer’s Resource Handbook.
