What Is the FTC Franchise Rule?
Have you ever had a friend thinking about buying a franchise? Maybe they dream of running their own coffee shop or boutique gym — but they still want the support of a bigger brand behind them.
There’s one rule they really need to know about.
It’s called the FTC Franchise Rule, and it’s kind of like a guardrail for big decisions. It helps people pause, think, and not sign anything too quickly.
So… what is it?
The FTC Franchise Rule says that any franchisor (aka the brand or company selling the franchise) has to give you a Franchise Disclosure Document at least 14 days before you sign.
Fourteen full days. No rushing. No pressure.
That document isn’t just a flyer or a sales sheet — it’s full of important stuff like:
How much it’ll cost to open
What kind of support you’ll get
Whether the brand has been in legal trouble
What your daily life might actually look like
Basically, it’s the grown-up version of “read the fine print.”
Why does this matter?
Starting a business is a huge deal. Even if the brand is well-known, like a favorite pizza place or hair salon, you’re the one signing the lease, hiring employees, and making it run.
The rule gives future franchisees time to:
Read the whole thing
Ask questions
Talk to a lawyer if they want to
Sleep on it (and maybe sleep on it again)
It’s there to protect you from a snap decision you might regret — and to make sure the franchisor is being upfront.
Good for the franchisee, good for the franchisor
Here’s the surprising part: most franchisors are glad this rule exists.
It means everyone’s on the same page. No shady stuff. No confusion. No one rushing into a business they don’t understand.
And when people come in prepared, the partnerships tend to last longer. Win-win.
Coming full circle
So next time you hear someone tossing around the idea of franchising, you can smile and say, “Hey, have you looked at the FTC Franchise Rule?”
They’ll thank you.
And you can feel good knowing that, tucked into all the paperwork and legal jargon, there’s a little 14-day grace period — a built-in moment to breathe, read, and think.
Which, honestly, more deals should have.
*This is not an offer to sell a franchise. Franchise offerings are made only through the delivery of a Franchise Disclosure Document (FDD)*
