Agency Information Collection Activities; Proposed Collection; Comment Request; Extension, 38451-38453 [E8-15143]
Download as PDF
Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Notices
inspection at the Federal Reserve Bank
indicated. The applications also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Additional information on all bank
holding companies may be obtained
from the National Information Center
website at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than July 28, 2008.
A. Federal Reserve Bank of Kansas
City (Todd Offenbacker, Assistant Vice
President) 1 Memorial Drive, Kansas
City, Missouri 64198–0001:
1. Stockmens Limited Partnership, to
become a bank holding company by
acquiring 66.85 percent of the voting
shares of Stockmens Financial
Corporation, both of Rapid City, South
Dakota, and thereby indirectly acquire
voting shares of Security First Bank,
Lincoln, Nebraska; Homestead Financial
Corporation, and The First National
Bank and Trust Company, both in
Beatrice, Nebraska.
Board of Governors of the Federal Reserve
System, June 27, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8–14966 Filed 7–3–08; 8:45 am]
Board of Governors of the Federal Reserve
System, June 30, 2008.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E8–15169 Filed 7–3–08; 8:45 am]
BILLING CODE 6210–01–S
BILLING CODE 6210–01–S
FEDERAL RESERVE SYSTEM
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
mstockstill on PROD1PC66 with NOTICES
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The application also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Additional information on all bank
holding companies may be obtained
from the National Information Center
website at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than July 28, 2008.
A. Federal Reserve Bank of Cleveland
(Douglas A. Banks, Vice President) 1455
East Sixth Street, Cleveland, Ohio
44101-2566:
1. Rurban Financial Corp., Defiance,
Ohio; to acquire 100 percent of the
voting shares of NBM Bancorp, Inc.,
Montpelier, Ohio, and thereby
indirectly acquire National Bank of
Montpelier, Montpelier, Ohio.
Notice of Proposals to Engage in
Permissible Nonbanking Activities or
to Acquire Companies that are
Engaged in Permissible Nonbanking
Activities
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR Part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
VerDate Aug<31>2005
17:39 Jul 03, 2008
Jkt 214001
The companies listed in this notice
have given notice under section 4 of the
Bank Holding Company Act (12 U.S.C.
1843) (BHC Act) and Regulation Y (12
CFR Part 225) to engage de novo, or to
acquire or control voting securities or
assets of a company, including the
companies listed below, that engages
either directly or through a subsidiary or
other company, in a nonbanking activity
that is listed in § 225.28 of Regulation Y
(12 CFR 225.28) or that the Board has
determined by Order to be closely
related to banking and permissible for
PO 00000
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Fmt 4703
Sfmt 4703
38451
bank holding companies. Unless
otherwise noted, these activities will be
conducted throughout the United States.
Each notice is available for inspection
at the Federal Reserve Bank indicated.
The notice also will be available for
inspection at the offices of the Board of
Governors. Interested persons may
express their views in writing on the
question whether the proposal complies
with the standards of section 4 of the
BHC Act. Additional information on all
bank holding companies may be
obtained from the National Information
Center website at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding the applications must be
received at the Reserve Bank indicated
or the offices of the Board of Governors
not later than July 25, 2008.
A. Federal Reserve Bank of Chicago
(Burl Thornton, Assistant Vice
President) 230 South LaSalle Street,
Chicago, Illinois 60690–1414:
1. FBOP Corporation, Oak Park,
Illinois, to acquire 100 percent of the
voting shares of PFF Bancorp, Inc.,
Rancho Cucamonga, California, and
thereby indirectly acquire PFF Bank &
Trust, Pomona, California, and thereby
engage in operating a savings
association, pursuant to section
225.28(b)(4)(ii) of Regulation Y;
Diversified Builders Services, Inc.,
Rancho Cucamonga, California, and
thereby engage in extending credit and
servicing loans, pursuant to section
225.28(b)(1) of Regulation Y; Glencrest
Investment Advisers, Rancho
Cucamonga, California, and thereby
engage in financial and investment
advisory services, pursuant to section
225.28(b)(6)(i) of Regulation Y; and
Pomona Financial Services, Rancho
Cucamonga, California, and thereby
engage in trust company functions,
pursuant to section 225.28(b)(5) of
Regulation Y.
Board of Governors of the Federal Reserve
System, June 30, 2008.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E8–15167 Filed 7–3–08; 8:45 am]
BILLING CODE 6210–01–S
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Extension
Federal Trade Commission
(‘‘Commission’’ or ‘‘FTC’’).
ACTION: Notice.
AGENCY:
SUMMARY: The information collection
requirements described below will be
submitted to the Office of Management
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38452
Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Notices
and Budget (‘‘OMB’’) for review, as
required by the Paperwork Reduction
Act (‘‘PRA’’). The FTC is seeking public
comments on its proposal to extend
through October 31, 2011, the current
PRA clearance for information
collection requirements contained in the
Commission’s Business Opportunity
Rule (‘‘Rule’’). The current clearance
expires on October 31, 2008.
Comments must be submitted on
or before September 5, 2008.
DATES:
Interested parties are
invited to submit written comments.
Comments should refer to ‘‘16 CFR Part
437: Paperwork Comment, FTC File No.
R511993’’ to facilitate the organization
of comments. A comment filed in paper
form should include this reference both
in the text and on the envelope and
should be mailed or delivered to the
following address: Federal Trade
Commission, Room H-135 (Annex J),
600 Pennsylvania Ave., N.W.,
Washington, D.C. 20580. The
Commission is requesting that any
comment filed in paper form be sent by
courier or overnight service, if possible
because U.S. postal mail in the
Washington area and at the FTC is
subject to delay due to heightened
security precautions. Moreover, because
paper mail in the Washington area and
at the FTC is subject to delay, please
consider submitting your comments in
electronic form, as prescribed below. If,
however, the comment contains any
material for which confidential
treatment is requested, it must be filed
in paper form, and the first page of the
document must be clearly labeled
‘‘Confidential.’’1
Comments filed in electronic form
should be submitted by following the
instructions on the web-based form at
(https://secure.commentworks.com/ftcbizopPRA) and following the
instructions on the web-based form. To
ensure that the Commission considers
an electronic comment, you must file it
on the web-based form at: (https://
secure.commentworks.com/ftcbizopPRA). If this notice appears at
www.regulations.gov, you may also file
an electronic comment through that
website. The Commission will consider
all comments that www.regulations.gov
forwards to it.
mstockstill on PROD1PC66 with NOTICES
ADDRESSES:
1 Commission Rule 4.2(d), 16 CFR 4.2(d). The
comment must be accompanied by an explicit
request for confidential treatment, including the
factual and legal basis for the request, and must
identify the specific portions of the comment to be
withheld from the public record. The request will
be granted or denied by the Commission’s General
Counsel, consistent with applicable law and the
public interest. See Commission Rule 4.9(c), 16 CFR
4.9(c).
VerDate Aug<31>2005
17:39 Jul 03, 2008
Jkt 214001
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. All timely and responsive
public comments will be considered by
the Commission and will be available to
the public on the FTC website, to the
extent practicable, at www.ftc.gov. As a
matter of discretion, the FTC makes
every effort to remove home contact
information for individuals from the
public comments it receives before
placing those comments on the FTC
website. More information, including
routine uses permitted by the Privacy
Act, may be found in the FTC’s privacy
policy at (https://www.ftc.gov/ftc/
privacy.shtm).
FOR FURTHER INFORMATION CONTACT:
Monica Vaca, Attorney, Division of
Marketing Practices, Bureau of
Consumer Protection, (202) 326-2245,
Federal Trade Commission, 600
Pennsylvania Avenue, N.W.,
Washington D.C. 20580.
SUPPLEMENTARY INFORMATION: Under the
PRA, 44 U.S.C. 3501-3521, federal
agencies must obtain approval from
OMB for each collection of information
they conduct or sponsor. ‘‘Collection of
information’’ means agency requests or
requirements that members of the public
submit reports, keep records, or provide
information to a third party. 44 U.S.C.
3502(3), 5 CFR 1320.3(c). As required by
section 3506(c)(2)(A) of the PRA, the
FTC is providing this opportunity for
public comment before requesting that
OMB extend the existing paperwork
clearance for the Business Opportunity
Rule, 16 CFR Part 437 (OMB Control
Number 3084-0142).
The FTC invites comments on: (1)
whether the proposed collection of
information required by the Rule is
necessary for the proper performance of
the functions of the agency, including
whether the information will have
practical utility; (2) the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the
methodology and assumptions used; (3)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (4) ways to minimize the
burden of the collection of information
on those who are to respond, including
through the use of appropriate
automated, electronic, mechanical, or
other technological collection
techniques or other forms of information
technology, e.g., permitting electronic
submission of responses.
The Rule is designed to ensure that
prospective purchasers of a business
opportunity receive information that
PO 00000
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Fmt 4703
Sfmt 4703
will help them evaluate the opportunity
that is presented to them. Part 437 was
promulgated in March of 2007,
concurrently with the amendment of the
Franchise Rule, Part 436. Part 437
mirrors the requirements and
prohibitions of the original Franchise
Rule, and imposes no additional
disclosure or recordkeeping obligations
or prohibitions.2 The Rule requires
business opportunity sellers to furnish
to prospective purchasers a disclosure
document that provides information
relating to the seller, the seller’s
business, the nature of the proposed
business opportunity, as well as
additional information regarding any
claims about actual or potential sales,
income, or profits for a prospective
business opportunity purchaser. The
seller must also preserve information
that forms a reasonable basis for such
claims. These requirements are subject
to the PRA. The FTC is seeking to
extend the current PRA clearance to
October 31, 2011.3
Estimated annual hours burden: 16,750
hours
Based on a review of trade
publications and information from state
regulatory authorities, staff believes
that, on average, from year to year, there
are approximately 2,500 business
opportunity sellers, with perhaps about
10% of that total reflecting an equal
amount of new and departing business
entrants.
The burden estimates for compliance
will vary depending on the particular
business opportunity seller’s prior
experience with the original Franchise
Rule. Staff estimates that 250 or so new
business opportunity sellers will enter
the market each year, requiring
approximately 30 hours each to develop
a Rule-compliant disclosure document.
Thus, staff estimates that the cumulative
2 In March of 2008, the Commission published
the Business Opportunity Rule Revised Notice of
Proposed Rulemaking, 73 FR 16110 (March 26,
2008) (‘‘Notice’’). The Notice proposed amending
the Business Opportunity Rule substantially, and
would, among other things, reduce the number of
required disclosures by sellers of business
opportunities to prospective purchasers.
Conversely, the Notice proposed amending the rule
to expand the coverage of entities required to make
disclosures to include a broader array of business
opportunities than those covered by the original
Franchise Rule. For now, however, only those
businesses opportunities covered by the original
Franchise Rule — such as vending machine and
rack display opportunities — remain covered under
part 437.
3 The current clearance under recently assigned
OMB Control Number 3084-0142 covers the terms
of the original Franchise Rule as applied to business
opportunity sellers. The portion of clearance
applicable to franchisors under Part 436 is
separately assigned to pre-existing OMB Control
Number 3084-0107.
E:\FR\FM\07JYN1.SGM
07JYN1
Federal Register / Vol. 73, No. 130 / Monday, July 7, 2008 / Notices
annual disclosure burden for new
business opportunity sellers will be
approximately 7,500 hours. Staff further
estimates that the remaining 2,250
established business opportunity sellers
will require no more than
approximately 3 hours each to update
their disclosure document. Accordingly,
staff estimates that the cumulative
annual disclosure burden for
established business opportunity sellers
will be approximately 6,750 hours.
Business opportunity sellers may
need to maintain additional
documentation for the sale of business
opportunities in states not currently
requiring these records as part of their
regulation of business opportunity
sellers. This could take up to an
additional hour of recordkeeping per
year. Accordingly, staff estimates that
business opportunity sellers will
cumulatively incur approximately 2,500
hours of recordkeeping burden each
year (2,500 business opportunity sellers
x 1 hour).
Thus, the total burden for business
opportunity sellers is approximately
16,750 hours (7,500 hours of disclosure
burden for new business opportunity
sellers + 6,750 hours of disclosure
burden for established business
opportunity sellers + 2,500 of
recordkeeping burden for all business
opportunity sellers).
mstockstill on PROD1PC66 with NOTICES
Estimated annual labor cost: $3,595,000
Labor costs are determined by
applying applicable wage rates to
associated burden hours. Staff presumes
an attorney will prepare or update the
disclosure document at an estimated
$250 per hour. As applied, this would
yield approximately $3,562,500 in labor
costs attributable to compliance with
the Rule’s disclosure requirements ((250
new business opportunity sellers x $250
per hour x 30 hours per seller) + (2,250
established business opportunity sellers
x $250 per hour x 3 hours per seller)).
Staff anticipates that recordkeeping
would be performed by clerical staff at
approximately $13 per hour. At 2,500
hours per year for all affected business
opportunity sellers (see above), this
would amount to a total cost of $32,500.
Thus, the combined labor costs for
recordkeeping and disclosure for
business opportunity sellers is
approximately $3,595,000.
Estimated non-labor cost: $3,887,500
Business opportunity sellers must
also incur costs to print and distribute
the disclosure document. These costs
vary based upon the length of the
disclosures and the number of copies
produced to meet the expected demand.
Staff estimates that 2,500 business
VerDate Aug<31>2005
19:10 Jul 03, 2008
Jkt 214001
opportunity sellers print and mail 100
documents per year at a cost of $15 per
document, for a total cost of $3,750,000
(2,500 business opportunity sellers x
100 documents per year x $15 per
document).
Business opportunity sellers must
also complete and disseminate an FTCrequired cover sheet that identifies the
business opportunity seller, the date the
document is issued, a table of contents,
and a notice that tracks the language
specifically provided in the Rule.
Although some of the language in the
cover sheet is supplied by the
government for the purpose of
disclosure to the public, and is thus
excluded from the definition of
‘‘collection of information’’ under the
PRA, see 5 CFR 1320.3(c)(2), there are
residual costs to print and mail these
cover sheets, including within them the
presentation of related information
beyond the supplied text. Staff estimates
that 2,500 business opportunity sellers
complete and disseminate 100 cover
sheets per year at a cost of
approximately $0.55 per cover sheet, or
a total cost of approximately $137,500
(2,500 business opportunity sellers x
100 cover sheets per year x $0.55 per
cover sheet).
Accordingly, the cumulative nonlabor cost incurred by business
opportunity sellers each year
attributable to compliance will be
approximately $3,887,500 ($3,750,000
for printing and mailing documents +
$137,500 for completing and mailing
cover sheets).
William Blumenthal,
General Counsel.
[FR Doc. E8–15143 Filed 7–3–08: 8:45 am]
BILLING CODE 6750–01–S
FEDERAL TRADE COMMISSION
[File No. 071 0203]
Carlyle Partners IV, L.P.; Analysis of
Agreement Containing Consent Order
to Aid Public Comment
Federal Trade Commission.
Proposed Consent Agreement.
AGENCY:
ACTION:
SUMMARY: The consent agreement in this
matter settles alleged violations of
federal law prohibiting unfair or
deceptive acts or practices or unfair
methods of competition. The attached
Analysis to Aid Public Comment
describes both the allegations in the
draft complaint and the terms of the
consent order — embodied in the
consent agreement — that would settle
these allegations.
PO 00000
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Fmt 4703
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38453
Comments must be received on
or before July 29, 2008.
ADDRESSES: Interested parties are
invited to submit written comments.
Comments should refer to ‘‘Carlyle
Partners, File No. 071 0203,’’ to
facilitate the organization of comments.
A comment filed in paper form should
include this reference both in the text
and on the envelope, and should be
mailed or delivered to the following
address: Federal Trade Commission/
Office of the Secretary, Room 135-H,
600 Pennsylvania Avenue, NW.,
Washington, DC 20580. Comments
containing confidential material must be
filed in paper form, must be clearly
labeled ‘‘Confidential,’’ and must
comply with Commission Rule 4.9(c).
16 CFR 4.9(c) (2005).1 The FTC is
requesting that any comment filed in
paper form be sent by courier or
overnight service, if possible, because
U.S. postal mail in the Washington area
and at the Commission is subject to
delay due to heightened security
precautions. Comments that do not
contain any nonpublic information may
instead be filed in electronic form by
following the instructions on the webbased form at (https://
secure.commentworks.com/ftcCarlylePartners). To ensure that the
Commission considers an electronic
comment, you must file it on that webbased form.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. All timely and responsive
public comments, whether filed in
paper or electronic form, will be
considered by the Commission, and will
be available to the public on the FTC
website, to the extent practicable, at
www.ftc.gov. As a matter of discretion,
the FTC makes every effort to remove
home contact information for
individuals from the public comments it
receives before placing those comments
on the FTC website. More information,
including routine uses permitted by the
Privacy Act, may be found in the FTC’s
privacy policy, at (https://www.ftc.gov/
ftc/privacy.htm).
FOR FURTHER INFORMATION CONTACT:
Catherine M. Moscatelli, FTC Bureau of
Competition, 600 Pennsylvania Avenue,
DATES:
1 The comment must be accompanied by an
explicit request for confidential treatment,
including the factual and legal basis for the request,
and must identify the specific portions of the
comment to be withheld from the public record.
The request will be granted or denied by the
Commission’s General Counsel, consistent with
applicable law and the public interest. See
Commission Rule 4.9(c), 16 CFR 4.9(c).
E:\FR\FM\07JYN1.SGM
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Agencies
[Federal Register Volume 73, Number 130 (Monday, July 7, 2008)]
[Notices]
[Pages 38451-38453]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-15143]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission (``Commission'' or ``FTC'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The information collection requirements described below will
be submitted to the Office of Management
[[Page 38452]]
and Budget (``OMB'') for review, as required by the Paperwork Reduction
Act (``PRA''). The FTC is seeking public comments on its proposal to
extend through October 31, 2011, the current PRA clearance for
information collection requirements contained in the Commission's
Business Opportunity Rule (``Rule''). The current clearance expires on
October 31, 2008.
DATES: Comments must be submitted on or before September 5, 2008.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``16 CFR Part 437: Paperwork Comment, FTC File
No. R511993'' to facilitate the organization of comments. A comment
filed in paper form should include this reference both in the text and
on the envelope and should be mailed or delivered to the following
address: Federal Trade Commission, Room H-135 (Annex J), 600
Pennsylvania Ave., N.W., Washington, D.C. 20580. The Commission is
requesting that any comment filed in paper form be sent by courier or
overnight service, if possible because U.S. postal mail in the
Washington area and at the FTC is subject to delay due to heightened
security precautions. Moreover, because paper mail in the Washington
area and at the FTC is subject to delay, please consider submitting
your comments in electronic form, as prescribed below. If, however, the
comment contains any material for which confidential treatment is
requested, it must be filed in paper form, and the first page of the
document must be clearly labeled ``Confidential.''\1\
---------------------------------------------------------------------------
\1\ Commission Rule 4.2(d), 16 CFR 4.2(d). The comment must be
accompanied by an explicit request for confidential treatment,
including the factual and legal basis for the request, and must
identify the specific portions of the comment to be withheld from
the public record. The request will be granted or denied by the
Commission's General Counsel, consistent with applicable law and the
public interest. See Commission Rule 4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------
Comments filed in electronic form should be submitted by following
the instructions on the web-based form at (https://
secure.commentworks.com/ftc-bizopPRA) and following the instructions on
the web-based form. To ensure that the Commission considers an
electronic comment, you must file it on the web-based form at: (https:/
/secure.commentworks.com/ftc-bizopPRA). If this notice appears at
www.regulations.gov, you may also file an electronic comment through
that website. The Commission will consider all comments that
www.regulations.gov forwards to it.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments will be
considered by the Commission and will be available to the public on the
FTC website, to the extent practicable, at www.ftc.gov. As a matter of
discretion, the FTC makes every effort to remove home contact
information for individuals from the public comments it receives before
placing those comments on the FTC website. More information, including
routine uses permitted by the Privacy Act, may be found in the FTC's
privacy policy at (https://www.ftc.gov/ftc/privacy.shtm).
FOR FURTHER INFORMATION CONTACT: Monica Vaca, Attorney, Division of
Marketing Practices, Bureau of Consumer Protection, (202) 326-2245,
Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington
D.C. 20580.
SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501-3521, federal
agencies must obtain approval from OMB for each collection of
information they conduct or sponsor. ``Collection of information''
means agency requests or requirements that members of the public submit
reports, keep records, or provide information to a third party. 44
U.S.C. 3502(3), 5 CFR 1320.3(c). As required by section 3506(c)(2)(A)
of the PRA, the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing paperwork clearance for
the Business Opportunity Rule, 16 CFR Part 437 (OMB Control Number
3084-0142).
The FTC invites comments on: (1) whether the proposed collection of
information required by the Rule is necessary for the proper
performance of the functions of the agency, including whether the
information will have practical utility; (2) the accuracy of the
agency's estimate of the burden of the proposed collection of
information, including the validity of the methodology and assumptions
used; (3) ways to enhance the quality, utility, and clarity of the
information to be collected; and (4) ways to minimize the burden of the
collection of information on those who are to respond, including
through the use of appropriate automated, electronic, mechanical, or
other technological collection techniques or other forms of information
technology, e.g., permitting electronic submission of responses.
The Rule is designed to ensure that prospective purchasers of a
business opportunity receive information that will help them evaluate
the opportunity that is presented to them. Part 437 was promulgated in
March of 2007, concurrently with the amendment of the Franchise Rule,
Part 436. Part 437 mirrors the requirements and prohibitions of the
original Franchise Rule, and imposes no additional disclosure or
recordkeeping obligations or prohibitions.\2\ The Rule requires
business opportunity sellers to furnish to prospective purchasers a
disclosure document that provides information relating to the seller,
the seller's business, the nature of the proposed business opportunity,
as well as additional information regarding any claims about actual or
potential sales, income, or profits for a prospective business
opportunity purchaser. The seller must also preserve information that
forms a reasonable basis for such claims. These requirements are
subject to the PRA. The FTC is seeking to extend the current PRA
clearance to October 31, 2011.\3\
---------------------------------------------------------------------------
\2\ In March of 2008, the Commission published the Business
Opportunity Rule Revised Notice of Proposed Rulemaking, 73 FR 16110
(March 26, 2008) (``Notice''). The Notice proposed amending the
Business Opportunity Rule substantially, and would, among other
things, reduce the number of required disclosures by sellers of
business opportunities to prospective purchasers. Conversely, the
Notice proposed amending the rule to expand the coverage of entities
required to make disclosures to include a broader array of business
opportunities than those covered by the original Franchise Rule. For
now, however, only those businesses opportunities covered by the
original Franchise Rule -- such as vending machine and rack display
opportunities -- remain covered under part 437.
\3\ The current clearance under recently assigned OMB Control
Number 3084-0142 covers the terms of the original Franchise Rule as
applied to business opportunity sellers. The portion of clearance
applicable to franchisors under Part 436 is separately assigned to
pre-existing OMB Control Number 3084-0107.
---------------------------------------------------------------------------
Estimated annual hours burden: 16,750 hours
Based on a review of trade publications and information from state
regulatory authorities, staff believes that, on average, from year to
year, there are approximately 2,500 business opportunity sellers, with
perhaps about 10% of that total reflecting an equal amount of new and
departing business entrants.
The burden estimates for compliance will vary depending on the
particular business opportunity seller's prior experience with the
original Franchise Rule. Staff estimates that 250 or so new business
opportunity sellers will enter the market each year, requiring
approximately 30 hours each to develop a Rule-compliant disclosure
document. Thus, staff estimates that the cumulative
[[Page 38453]]
annual disclosure burden for new business opportunity sellers will be
approximately 7,500 hours. Staff further estimates that the remaining
2,250 established business opportunity sellers will require no more
than approximately 3 hours each to update their disclosure document.
Accordingly, staff estimates that the cumulative annual disclosure
burden for established business opportunity sellers will be
approximately 6,750 hours.
Business opportunity sellers may need to maintain additional
documentation for the sale of business opportunities in states not
currently requiring these records as part of their regulation of
business opportunity sellers. This could take up to an additional hour
of recordkeeping per year. Accordingly, staff estimates that business
opportunity sellers will cumulatively incur approximately 2,500 hours
of recordkeeping burden each year (2,500 business opportunity sellers x
1 hour).
Thus, the total burden for business opportunity sellers is
approximately 16,750 hours (7,500 hours of disclosure burden for new
business opportunity sellers + 6,750 hours of disclosure burden for
established business opportunity sellers + 2,500 of recordkeeping
burden for all business opportunity sellers).
Estimated annual labor cost: $3,595,000
Labor costs are determined by applying applicable wage rates to
associated burden hours. Staff presumes an attorney will prepare or
update the disclosure document at an estimated $250 per hour. As
applied, this would yield approximately $3,562,500 in labor costs
attributable to compliance with the Rule's disclosure requirements
((250 new business opportunity sellers x $250 per hour x 30 hours per
seller) + (2,250 established business opportunity sellers x $250 per
hour x 3 hours per seller)).
Staff anticipates that recordkeeping would be performed by clerical
staff at approximately $13 per hour. At 2,500 hours per year for all
affected business opportunity sellers (see above), this would amount to
a total cost of $32,500. Thus, the combined labor costs for
recordkeeping and disclosure for business opportunity sellers is
approximately $3,595,000.
Estimated non-labor cost: $3,887,500
Business opportunity sellers must also incur costs to print and
distribute the disclosure document. These costs vary based upon the
length of the disclosures and the number of copies produced to meet the
expected demand. Staff estimates that 2,500 business opportunity
sellers print and mail 100 documents per year at a cost of $15 per
document, for a total cost of $3,750,000 (2,500 business opportunity
sellers x 100 documents per year x $15 per document).
Business opportunity sellers must also complete and disseminate an
FTC-required cover sheet that identifies the business opportunity
seller, the date the document is issued, a table of contents, and a
notice that tracks the language specifically provided in the Rule.
Although some of the language in the cover sheet is supplied by the
government for the purpose of disclosure to the public, and is thus
excluded from the definition of ``collection of information'' under the
PRA, see 5 CFR 1320.3(c)(2), there are residual costs to print and mail
these cover sheets, including within them the presentation of related
information beyond the supplied text. Staff estimates that 2,500
business opportunity sellers complete and disseminate 100 cover sheets
per year at a cost of approximately $0.55 per cover sheet, or a total
cost of approximately $137,500 (2,500 business opportunity sellers x
100 cover sheets per year x $0.55 per cover sheet).
Accordingly, the cumulative non-labor cost incurred by business
opportunity sellers each year attributable to compliance will be
approximately $3,887,500 ($3,750,000 for printing and mailing documents
+ $137,500 for completing and mailing cover sheets).
William Blumenthal,
General Counsel.
[FR Doc. E8-15143 Filed 7-3-08: 8:45 am]
BILLING CODE 6750-01-S