Disclosure Requirements for Franchising and Business Opportunity Ventures (

Forms and Documents

Document Name	Status
Franchise Rule 83-C.pdf Justification for No Material/Nonsubstantive Change	2007-01-25

IC Document Collections

IC ID	Document Title	Status
46498	Part 437 of Franchise Rule For Established Entities (Business Opportunity Sellers)	New
46496	Part 437 of Franchise Rule For New Entrants (Business Opportunity Sellers)	New
46494	Part 436 of Franchise Rule For Established Entities (Business Format Franchisors)	New
32310	Part 436 of Franchise Rule For New Entrants (Business Format Franchisors)	Modified

ICR Details

OMB Control No: 3084-0107	ICR Reference No: 200612-3084-003
Status: Historical Active	Previous ICR Reference No: 200508-3084-002
Agency/Subagency: FTC	Agency Tracking No:
Title: Disclosure Requirements for Franchising and Business Opportunity Ventures (
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 01/26/2007
	Date Received in OIRA: 01/25/2007
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2008	10/31/2008	10/31/2008
Responses	500,000	0	500,000
Time Burden (Hours)	36,250	0	37,000
Cost Burden (Dollars)	11,887,500	0	12,027,000

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Abstract: The Franchise Rule requires franchisors and franchise brokers to furnish a disclosure document to prospective franchisees prior to sale. Prospective franchisees use the information to become more informed about the proposed investment and to verify representations made by a franchisor.

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Authorizing Statute(s): None

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Part 436 of Franchise Rule For New Entrants (Business Format Franchisors)
Part 437 of Franchise Rule For New Entrants (Business Opportunity Sellers)
Part 437 of Franchise Rule For Established Entities (Business Opportunity Sellers)
Part 436 of Franchise Rule For Established Entities (Business Format Franchisors)

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	500,000	500,000	0	0	0	0
Annual Time Burden (Hours)	36,250	37,000	0	0	-750	0
Annual Cost Burden (Dollars)	11,887,500	12,027,000	0	0	-139,500	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: As further explained in the uploaded supplementary document, Commission staff has identified several inadvertent errors with respect to the PRA analysis contained in the FTC’s 2005 submission to OMB for the Rule. Commission staff, therefore, seeks the following adjustments to the FTC’s previous burden estimates: the total annual burden hours estimate for the Rule should be adjusted to 36,250 hours (a decrease of 750 hours) and the total annual non-labor cost estimate for the Rule should be adjusted to $11,887,500 (a decrease of $139,500).

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 01/25/2007

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