The  fr a n c hi
sors should n ot be r e quire d to di stribut e  c opies of  the UF OC t o a tt e nde e s a t t he  sho ws
unless a  re pr e se ntative o f  that f ra nc hisor e n g a ge s in a " on e
-
on
-
on e  pe rson a l m e e ti ng"  with a
show a tt e nde e   e it he r a t a   mee ti ng  late r in the  show , or a t a me e ti n g  durin g  
t he  show a w a y  fr om
the booth pr e mi se s such a s a  mee ti n g  room, r e sta ura nt or c on c e ssi on table   a re a , o r a  on e
-
on
-
on e  
mee ti ng  b e hind t he  booth i f a rr a n ge ments ha v e  be e n made  fo r this t y pe  o f more  invol ve d c ontac t.
Othe r tha n the c i rc umst a nc e s a bove , I  view   a l
l ot he r c onta c ts at the booth b e twe e n
re pre s e ntatives of  the fr a nc hisor a nd show a tt e nd e e s a s " ini ti a l c a sua l enc o unter s"  whi c h do not
a nd shoul d not be c onsi de re d a s "first pe rsona l m e e ti ng s. "   I n that c ont e x t, t he  fr a n c hisor shoul d
be  re quir e d to have  on
th e  pre mi se s a   c op y  of the   UF OC, but  he  shoul d c o nti nue  to be e x e mpt  
fr om di stribut ing  that do c ument unless it  is a " bo na fide  fir st pe rsona l m e e t ing  c onta c t."
F urthe rmo re , thi s pa rtic u lar  re quir e ment is  one  tha t Tra de  S how Promot e rs c a n e nfo rc e  a nd
shoul d
be  he ld re sponsi ble f or e n for c in g  on the gr ounds of the ir shows.
B e y ond thes e  re quir e men ts, I  do a gre e d  that the Rul e  shoul d be  a mende d to  " spe c ific a ll y  
e x e mpt "  Tr a de  S how Pro mot e rs f rom inclusion i n the de finiti on of  "F ra n c hi se  B rok e rs, "  a nd
fur ther mor e ,
Tr a d e  S how  P romoter s shoul d not be he ld " joi ntl y   a nd se ve re l y " l iable  fo r Rule
viol a ti ons.
Que sti on/Topi c : Ea rnin gs di sc losure .
C omm e nt/ R e sponse: As state d in t he  re view  o f T he  R ule, I  a g r e e  with t he   proble ms t ha t have  
be e n e x pre ssed r e g a rdin g manda tor y  e a
rnin g s c lai m di sc losure .
I n a ddit ion, i t i s m y  b e li e f tha t no one ha s menti on e d or a ddr e ssed a d e qua te l y  the pr oblems f a c e d
b y   " ne w, e mer g in g  f ra n c hisors"  who a re  just  c om menc ing  th e ir f r a nc hisi n g  a c ti vit y . C lea rl y , the y  
do not have  the tr a c k re c ord o r hist
oric a l ex pe rie n c e  to su pport a n y  e a rnin gs c laims  that would be  
pre se nted to pr osp e c ti ve   fr a nc hise e s.
W it h re g a rd to w o rding  t o be  re quir e d a s include d  tex t i n the C irc ular s of c ompanie s that do not  
disclose or  prov ide e a rni ng s c laims , I   a g re e  with t he  prop
ose d wo rding   a s f ound in P a ra g ra ph 22
of Sec ti on E r e latin g  to e a rning s di s c losure s in t he  re view  of T h e   F ra n c hise  R ule.
F urthe rmo re , I   a lso a g re e  that it  is i mporta nt t o c orr e c t t he  mi sre p re se ntatio n that the F TC R ule
a c tuall y  proh ibi ts t he  disclosure  of
e a rnin g s c laim s, a nd I  a g r e e  that the a d dit ional lang ua ge  
indi c a ti ng  that the F TC R ule doe s pe rmit a f ra nc hi sor to pr ovide disc losure   infor mation about
a c tual or  potential sa les s hould be r e quire d, a nd I   a lso beli e ve  that the pr op ose d langua g e   for  
fr a nc his
ors who c hoose  n ot t o disclose a n y   e a rnin gs, c laims  or inc ome pote nti a l shou ld also be  
include d a nd re qui re d a s pa rt of  the te x t of the  off e ring   c irc ul a r pr e se nted t o pro spe c ti ve  
fr a nc hise e s.
I   a lso fe e l t ha t t he   F TC s hould be c o g niz a nt of the d il e mm a  that
man y  f ra n c hisors a re  pl a c e d in
whe n the y  e le c t not  to provide  a  prospe c ti ve  fr a nc hisee  with an y  e a rnin g s c laims  or po tential
e a rnin g s or inc ome in for mation wha tsoeve r.
4
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