In each case, the defendants were charged with violating the FTC's Franchise Rule, which requires franchisors to give potential buyers a document that includes important details about the venture including, for instance, information about past and present franchisees. All three settlements also contain various reporting and record keeping requirements designed to assist the FTC in monitoring the defendants' compliance. The Commission vote to accept these settlements was 5-0. They were filed in federal district courts as noted below, and require the courts' approval to become binding. These consent judgments are for settlement purposes only and do not constitute admissions by the defendants of law violations.
Consent judgments have the force of law when signed by a judge.