The FTC's Franchise Rule requires companies selling franchises to give potential buyers a detailed disclo sure document containing information about the business and its directors, including their litiga tion history, the full cost of the business, and the names of former franchisees that consumers can contact. If a franchisor chooses to make earnings claims, it must be able to substantiate them and is required to give potential buyers a copy of a document containing that substantiation. The FTC filed the proposed consent judgment in this case in U.S. District Court for the Southern District of Florida, Fort Lauderdale Division. The Commission vote to authorize filing was 5-0. This consent judgment is for settlement purposes only and does not constitute an admission by the defendant of a law violation.
Consent judgments have the force of law when signed by the judge.