Opinion 07-2
Addresses whether affiliates must disclose audited financial statements under Item 21.
Advisory Opinions
Our staff issue advisory opinions to help clarify FTC rules and decisions regarding either competition or consumer protection issues, often in response to requests from businesses and industry groups. To find a specific opinion, use the filters on this page. Parties may request advice from our staff concerning proposed conduct.
Franchise & Business Opportunities
The following staff opinions interpreting the original Franchise Rule remain useful as a source of interpretation for the amended Franchise Rule and the Business Opportunity Rule, except where the Statement of Basis and Purpose for the amended Franchise Rule or Business Opportunity Rule contradict a staff opinion.
Opinion 07-1
Addresses whether a franchisor may distribute disclosure documents in a foreign language.
Opinion 06-1
Discusses whether franchisors can seek leads by placing advertisements on employment websites.
Opinion 06-2
Addresses the preparation of auditied financial statements following a corporate restructuring and change in fiscal year.
Opinion 05-5
Discusses: (1) a successor's obligation to prepare audited financial statements following an asset purchase agreement; and (2) the disclosure of parent information.
Opinion 05-4
Addresses a request to conduct a demonstration project for electronic compliance with the Franchise Rule.
Opinion 05-3
Discusses the application of the Franchise Rule to an opportunity involving the use of point-of-sale touch screen terminals.
Opinion 05-2
Discusses the applicability of the Franchise Rule to a license to use a method designed to increase sales of experienced businesses.
Opinion 05-1
Addresses the Franchise Rule's single trademark license exclusion.
Opinion 04-4
Addresses the application of the Franchise Rule to a membership network.
Opinion 04-3
Discusses the application of the Franchise Rule to a web-based travel service.
Opinion 04-2
Addresses earnings claims in electronic advertisements, including bulk commercial email.
Opinion 04-1
Discusses the application of the Franchise Rule to a trademarked business planning course.
Staff Advisory Opinion - Pyramid Scheme Analysis
Discusses the Commission’s analysis of compensation based on personal consumption by members of a multi-level company’s sales force and the legal significance of consent orders the Commission has entered with pyramid scheme operators.
Opinion 03-5
Addresses a request to conduct a demonstration project for electronic compliance with the Franchise Rule.
Opinion 03-4
Discusses the application of the Franchise Rule to automotive paint matching businesses.
Opinion 03-3
Addresses a request to conduct a demonstration project for electronic compliance with the Franchise Rule.
Opinion 03-2
Discusses whether the Franchise Rule applies to a license agreement for the manufacture and distribution of a soil supplement.
Opinion 03-1
Discusses whether a franchisor must disclose a guilty plea involving a violation of the Ontario Gaming Control Act under section 436.1(a)(4) of the Franchise Rule.
Opinion 02-4
Discusses whether franchisors may use financial statements prepared according to non-American generally accepted accounting principles (GAAP).
