F
.T.C. P
ubli
c
C
omm
e
nt
116
"
Ga
g"
o
rde
r
a
rr
a
n
g
e
ment
s ofte
n for
m a n
e
c
e
ss
a
r
y
ince
nti
ve
for
f
ra
n
c
hisors t
o e
nter
int
o
se
tt
leme
nt agr
e
e
m
e
nts wi
th fr
a
nc
hise
e
s. Ga
g
o
rde
r
a
rr
a
n
ge
ments shoul
d not be r
e
g
ulate
d,
a
nd
the
y
shoul
d c
e
rta
inl
y
not
be
proh
ibi
ted…
I
t i
s m
y
b
e
li
e
f tha
t t
he
F
ra
n
c
hise Rul
e
shoul
d not appl
y
to i
nter
na
ti
ona
l sale
s, a
nd
I
a
g
re
e
d with all of the
major
point
s that we
re
m
a
de
in t
he
ori
g
inal
discussi
ons.
16 C
F
R
P
a
rt 436
Tr
a
de
R
e
g
ulations R
ule
on Disc
losure
R
e
quire
me
nts and Prohibi
ti
ons C
on
c
e
rnin
g
F
ra
n
c
hisi
ng
a
nd
B
usiness Oppor
tuni
t
y
Ve
nture
s
C
omm
e
nts on
P
ropose
d C
ha
ng
e
s to 1
6 C
F
R
P
a
rt 436
The
following
c
omm
e
nts and obse
rva
ti
ons a
re
sub
mi
tt
e
d b
y
C
a
rl J
e
ff
e
rs, Pr
e
sident of
I
ntel
Ma
rke
ti
n
g
S
y
stem, a
fr
a
n
c
hise c
onsul
ti
ng
fi
rm spe
c
ializ
ing
in fr
a
nc
his
e
stru
c
turing
a
nd fr
a
nc
hise
mar
ke
ti
ng
a
nd sa
les.
The
c
omm
e
nts wi
ll
follow the
ba
sic c
h
ronolog
i
c
a
l orde
r of
the disc
ussi
on
of the
va
rious subj
e
c
t
topi
c
s a
s the
y
a
ppe
a
r in
The
R
ule f
rom P
oint
I
thr
oug
h
I
X
.
Que
sti
on/Topi
c
: S
hould
The
R
ule be
a
mend
e
d to
re
quire
disclosur
e
of la
w
suit
s filed b
y
fr
a
nc
hisors
a
g
a
inst
fr
a
nc
hisee
s?
C
omm
e
nt/
R
e
sponse: A spe
c
ific
c
h
a
n
g
e
in The
R
u
le to r
e
quire
disclosur
e
of
law
suit
s b
y
fr
a
nc
hisors m
a
y
be
unne
c
e
ssar
y
.
As a
pr
a
c
ti
c
a
l m
a
tt
e
r f
r
a
nc
hisor ini
ti
a
ted l
a
wsuits
a
re
oft
e
n
ti
mes vie
we
d fa
vor
a
bl
y
b
y
the
c
ompan
y
a
s a
n indi
c
a
ti
on of
the c
ompan
y
's d
e
sire
to either
e
nfor
c
e
it
s st
a
nda
rds, c
on
sis
tenc
y
, p
rote
c
ti
on of
tra
de
mar
ks, or d
e
mons
tra
te
it
s c
omm
it
ment to