Agency Information Collection Activities; Proposed Collection; Comment Request, 19479-19481 [2020-07269]
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Federal Register / Vol. 85, No. 67 / Tuesday, April 7, 2020 / Notices
Connect America support up to the total
reserve prices of all of the Connect
America Phase II auction eligible census
blocks that are included in the bid,
provided that New York has committed,
at a minimum, the same dollar amount
of New York support to the Connect
America-eligible areas in that bid.
Before Connect America Phase II
support is authorized, the Bureau will
closely review the winning bidders to
ensure that they have met the eligibility
requirements adopted by the
Commission and that they are
technically and financially qualified to
meet the terms and conditions of
Connect America support. To aid in
collecting this information regarding
New York State’s winning bidders and
the applicants’ ability to meet the terms
and conditions of Connect America
Phase II support in a uniform fashion,
parties must complete FCC Form 5625.
Federal Communications Commission.
Cecilia Sigmund,
Federal Register Liaison Officer, Office of the
Secretary.
[FR Doc. 2020–07209 Filed 4–6–20; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL RESERVE SYSTEM
khammond on DSKJM1Z7X2PROD with NOTICES
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
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, if any, are available for
immediate inspection at the Federal
Reserve Bank indicated. The
applications will also 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)).
Comments regarding each of these
applications must be received at the
Reserve Bank indicated or the offices of
the Board of Governors, Ann E.
Misback, Secretary of the Board, 20th
Street and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than May 7, 2020.
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18:22 Apr 06, 2020
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A. Federal Reserve Bank of Chicago
(Colette A. Fried, Assistant Vice
President) 230 South LaSalle Street,
Chicago, Illinois 60690–1414:
1. ChoiceOne Financial Services, Inc.,
Sparta, Michigan; to merge with
Community Shores Bank Corporation
and thereby indirectly acquire
Community Shores Bank, both of
Muskegon, Michigan.
Board of Governors of the Federal Reserve
System, April 2, 2020.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2020–07291 Filed 4–6–20; 8:45 am]
19479
Sidamon-Eristoff 2003 Grantor Retained
Annuity Trust, Woodbridge, New Jersey,
Martha Phipps Maguire, trustee; to
acquire voting shares of Bessemer
Group, Inc., and thereby indirectly
acquire voting shares of Bessemer Trust
Company, both of Woodbridge, New
Jersey, and Bessemer Trust Company,
N.A, New York, New York.
Board of Governors of the Federal Reserve
System, April 2, 2020.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2020–07290 Filed 4–6–20; 8:45 am]
BILLING CODE P
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisitions of Shares of a Bank or
Bank Holding Company
The notificants listed below have
applied under the Change in Bank
Control Act (Act) (12 U.S.C. 1817(j)) and
§ 225.41 of the Board’s Regulation Y (12
CFR 225.41) to acquire shares of a bank
or bank holding company. The factors
that are considered in acting on the
applications are set forth in paragraph 7
of the Act (12 U.S.C. 1817(j)(7)).
The applications listed below, as well
as other related filings required by the
Board, if any, are available for
immediate inspection at the Federal
Reserve Bank indicated. The
applications will also 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 paragraph 7 of
the Act.
Comments regarding each of these
applications must be received at the
Reserve Bank indicated or the offices of
the Board of Governors, Ann E.
Misback, Secretary of the Board, 20th
Street and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than April 22, 2020.
A. Federal Reserve Bank of New York
(Ivan Hurwitz, Senior Vice President) 33
Liberty Street, New York, New York
10045–0001. Comments can also be sent
electronically to
Comments.applications@ny.frb.org:
1. JGD III (J. Gordon Douglas, III) &
DESC UA 8 A3 UW MB (Margaret
Boegner) BGI Trust, Martha Phipps
Maguire, trustee, both of New York, New
York; Andrew P. Sidamon-Eristoff 2003
Grantor Retained Annuity Trust,
Woodbridge, New Jersey, Martha Phipps
Maguire, trustee; Elizabeth SidamonEristoff 2003 Grantor Retained Annuity
Trust, Woodbridge, New Jersey, Martha
Phipps Maguire, trustee; and Simon
PO 00000
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FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request
Federal Trade Commission.
Notice.
AGENCY:
ACTION:
In accordance with the
Paperwork Reduction Act of 1995
(‘‘PRA’’), the Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’) is seeking
public comment on its proposal to
extend for an additional three years the
Office of Management and Budget
clearance for information collection
requirements in its Trade Regulation
Rule on Disclosure Requirements and
Prohibitions Concerning Franchising
(‘‘Franchise Rule’’ or ‘‘Rule’’). That
clearance expires on October 31, 2020.
DATES: Comments must be submitted by
June 8, 2020.
ADDRESSES: Interested parties may file a
comment online or on paper, by
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Franchise Rule, PRA
Comment, FTC File No. P094400’’ on
your comment and file your comment
online at https://www.regulations.gov,
by following the instructions on the webbased form. If you prefer to file your
comment on paper, mail your comment
to the following address: Federal Trade
Commission, Office of the Secretary,
600 Pennsylvania Avenue NW, Suite
CC–5610 (Annex J), Washington, DC
20580, or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex J),
Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Christine M. Todaro, Attorney, Division
of Marketing Practices, Bureau of
Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue
SUMMARY:
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Federal Register / Vol. 85, No. 67 / Tuesday, April 7, 2020 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
NW, Room 8607, Washington, DC
20580, (202) 326–3711, ctodaro@ftc.gov.
SUPPLEMENTARY INFORMATION:
Title of Collection: Franchise Rule, 16
CFR part 436.
OMB Control Number: 3084–0107.
Type of Review: Extension without
change of currently approved collection.
Affected Public: Private Sector:
Businesses and other for-profit entities.
Estimated Annual Burden Hours:
16,750.
Estimated Annual Labor Costs:
$3,603,125.
Estimated Annual Non-Labor Costs:
$7,250,000.
Abstract: The Franchise Rule ensures
that consumers who are considering a
franchise investment have access to the
material information they need to make
an informed investment decision and
compare different franchise offerings.
The Rule requires franchisors to furnish
prospective purchasers with a Franchise
Disclosure Document (‘‘FDD’’) that
provides information relating to the
franchisor, its business, the nature of the
proposed franchise, and any
representations by the franchisor about
financial performance regarding actual
or potential sales, income, or profits
made to a prospective franchise
purchaser. The Rule also requires that
franchisors maintain records to facilitate
enforcement of the Rule.1 The
franchisor must preserve materially
different copies of its FDD for 3 years,
as well as information that provides a
reasonable basis for any financial
performance representation it elects to
make.
Estimated Annual Hours Burden:
16,750.
Based on information from state
regulatory authorities and relevant trade
journals, staff estimates that there are
approximately 2,500 sellers of
franchises covered by the Rule, with
approximately 10% of that total
reflecting an equal amount of new and
departing business entrants.2 Staff
estimates that the average annual
disclosure burden for established
franchisors to update existing disclosure
documents will be three hours per seller
for a total of 6,750 hours (2,250
franchisors × 3 hours). For new
franchisors, staff estimates that
1 The Rule was amended in 2007 to conform its
disclosure requirements with the disclosure format
accepted by 15 states that have franchise
registration or disclosure laws. See 72 FR 15444
(Mar. 30, 2007). The amended Rule has significantly
minimized any compliance burden beyond what is
required by state law.
2 This number appears to be consistent with the
number of business format franchise offerings
registered in compliance with state franchise laws,
and listed in franchise directories.
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18:22 Apr 06, 2020
Jkt 250001
preparation of disclosure documents by
new sellers of franchise opportunities
will require approximately 30 hours for
a total of 7,500 hours (250 new
franchisors × 30 hours).
Covered franchisors also may need to
maintain an alternative version of the
FDD for use in non-registration states,
which may differ from FDDs used in
registration states. Staff estimates that
this recordkeeping obligation would
require approximately one hour per
year. This results in an additional
burden of 2,500 hours (2,500 franchisors
× 1 hour). Under the Rule, a franchisor
is also required to retain copies of
receipts of disclosure documents, as
well as materially different versions of
its disclosure documents. Such
recordkeeping requirements, however,
are consistent with, or less burdensome
than, those imposed by the states that
have franchise registration and
disclosure laws. Accordingly, staff
believes that incremental recordkeeping
burden, if any, would be de minimis.
Estimated Annual Labor Costs:
$3,603,125.
Labor costs are derived by applying
estimated hourly cost figures to the
burden hours described above. FTC staff
anticipates that an attorney will prepare
required disclosure documents at an
estimated hourly attorney rate of $250.3
For established franchisors, estimates
the following annual labor costs: $750
per established franchisor (3 hours ×
$250) for a total annual cost burden of
$1,687,500 ($750 × 2,250 established
franchisors). For new franchisors, this
yields an annual cost of $7,500 per new
franchisor (30 hours × $250) for a total
annual cost burden of $1,875,000 for
new franchisors ($7,500 × 250 new
franchisors).
The FTC additionally anticipates that
recordkeeping under the Rule will be
performed by clerical staff at
approximately $16.25 per hour.4 Thus,
2,500 hours of recordkeeping burden
per year for all covered franchisors will
amount to a total annual labor cost of
$40,625.
Estimated Annual Non-Labor Costs:
$7,250,000.
In developing cost estimates for this
Rule, FTC staff consulted with
practitioners who prepare disclosure
documents for a cross-section of
franchise systems. The FTC believes
3 Commission staff believes this is a reasonable
estimate for mean hourly attorney rates for
franchisor consultation on compliance with the
Rule’s disclosure and recordkeeping requirements.
4 Based on mean hourly wages for file clerks
found in Table 1. ‘‘National employment and wage
data from the Occupational Employment Statistics
survey by occupation, May 2018,’’ at https://
www.bls.gov/news.release/ocwage.t01.htm.
PO 00000
Frm 00059
Fmt 4703
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that its cost estimates remain
representative of the costs incurred by
franchisors generally.
FTC staff estimates that the non-labor
burden incurred by franchisors differs
based on the length of the disclosure
document, the number produced, and
the method of distribution employed by
franchisors. Staff estimates that the
estimated 2,500 sellers of franchise
opportunities distribute approximately
100 disclosure documents each
annually for a total of 250,000
disclosure documents. Staff estimates
that 80% of these disclosure documents
are distributed in hard copy format at a
cost of $35 each for printing and mailing
costs. This results in a total estimated
$7,000,000 in non-labor costs printing
and mailing disclosure documents
(200,000 × $35). Staff estimates that the
remaining 20% of disclosure documents
(50,000) are distributed electronically, at
a cost of $5 per electronic disclosure.
This yields a total non-labor cost burden
associated with the electronic
distribution of disclosure documents of
$250,000 (50,000 × $5).
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 clearance for the
information collection requirements
contained in the Franchise Rule, 16 CFR
part 436 (OMB Control No. 3084–0107).
Request for Comment
Pursuant to Section 3506(c)(2)(A) of
the PRA, the FTC invites comments on:
(1) Whether the proposed collection of
information 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.
E:\FR\FM\07APN1.SGM
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khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 85, No. 67 / Tuesday, April 7, 2020 / Notices
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before June 8, 2020. Write ‘‘Franchise
Rule, PRA Comment, FTC File No.
P094400’’ on your comment. Postal mail
addressed to the Commission is subject
to delay due to heightened security
screening. As a result, we encourage you
to submit your comments online. To
make sure that the Commission
considers your online comment, you
must file it through the https://
www.regulations.gov website by
following the instructions on the webbased form provided. Your comment,
including your name and your state—
will be placed on the public record of
this proceeding, including the https://
www.regulations.gov website.
If you file your comment on paper,
write ‘‘Franchise Rule, PRA Comment,
FTC File No. P094400’’ on your
comment and on the envelope, and mail
your comment to the following address:
Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue
NW, Suite CC–5610 (Annex J),
Washington, DC 20580, or deliver your
comment to the following address:
Federal Trade Commission, Office of the
Secretary, Constitution Center, 400 7th
Street SW, 5th Floor, Suite 5610,
Washington, DC 20024. If possible,
please submit your paper comment to
the Commission by courier or overnight
service.
Because your comment will be placed
on the public record, you are solely
responsible for making sure that your
comment does not include any sensitive
or confidential information. In
particular, your comment should not
include any sensitive personal
information, such as your or anyone
else’s Social Security number; date of
birth; driver’s license number or other
state identification number, or foreign
country equivalent; passport number;
financial account number; or credit or
debit card number. You are also solely
responsible for making sure that your
comment does not include any sensitive
health information, such as medical
records or other individually
identifiable health information. In
addition, your comment should not
include any ‘‘trade secret or any
commercial or financial information
which . . . is privileged or
confidential’’—as provided by Section
6(f) of the FTC Act, 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—
including in particular competitively
sensitive information such as costs,
sales statistics, inventories, formulas,
patterns, devices, manufacturing
processes, or customer names.
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18:22 Apr 06, 2020
Jkt 250001
Comments containing material for
which confidential treatment is
requested must be filed in paper form,
must be clearly labeled ‘‘Confidential,’’
and must comply with FTC Rule 4.9(c).
In particular, the written request for
confidential treatment that accompanies
the comment must include the factual
and legal basis for the request, and must
identify the specific portions of the
comment to be withheld from the public
record. See FTC Rule 4.9(c). Your
comment will be kept confidential only
if the General Counsel grants your
request in accordance with the law and
the public interest. Once your comment
has been posted on https://
www.regulations.gov—as legally
required by FTC Rule 4.9(b)—we cannot
redact or remove your comment from
https://www.regulations.gov, unless you
submit a confidentiality request that
meets the requirements for such
treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
The FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before June 8, 2020. For information on
the Commission’s privacy policy,
including routine uses permitted by the
Privacy Act, see https://www.ftc.gov/
site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2020–07269 Filed 4–6–20; 8:45 am]
BILLING CODE 6750–01–P
FEDERAL TRADE COMMISSION
[File No. 192 3050]
Ortho-Clinical Diagnostics, Inc.;
Analysis of Proposed Consent Order
To Aid Public Comment
Federal Trade Commission.
Proposed Consent Agreement;
request for comment.
AGENCY:
ACTION:
The consent agreement in this
matter settles alleged violations of
federal law prohibiting unfair or
deceptive acts or practices. The attached
Analysis to Aid Public Comment
describes both the allegations in the
complaint and the terms of the consent
order—embodied in the consent
agreement—that would settle these
allegations.
DATES: Comments must be received on
or before May 7, 2020.
ADDRESSES: Interested parties may file
comments online or on paper, by
SUMMARY:
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
19481
following the instructions in the
Request for Comment part of the
SUPPLEMENTARY INFORMATION section
below. Write ‘‘Ortho-Clinical
Diagnostics, Inc.; File No. 192 3050’’ on
your comment, and file your comment
online at https://www.regulations.gov by
following the instructions on the webbased form. If you prefer to file your
comment on paper, mail your comment
to the following address: Federal Trade
Commission, Office of the Secretary,
600 Pennsylvania Avenue NW, Suite
CC–5610 (Annex D), Washington, DC
20580, or deliver your comment to the
following address: Federal Trade
Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW,
5th Floor, Suite 5610 (Annex D),
Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Kenneth Abbe (310–824–4300), Bureau
of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Avenue
NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: Pursuant
to Section 6(f) of the Federal Trade
Commission Act, 15 U.S.C. 46(f), and
FTC Rule 2.34, 16 CFR 2.34, notice is
hereby given that the above-captioned
consent agreement containing a consent
order to cease and desist, having been
filed with and accepted, subject to final
approval, by the Commission, has been
placed on the public record for a period
of thirty (30) days. The following
Analysis to Aid Public Comment
describes the terms of the consent
agreement and the allegations in the
complaint. An electronic copy of the
full text of the consent agreement
package can be obtained from the FTC
website (for March 30, 2020), at this web
address: https://www.ftc.gov/newsevents/commission-actions.
You can file a comment online or on
paper. For the Commission to consider
your comment, we must receive it on or
before May 7, 2020. Write ‘‘OrthoClinical Diagnostics, Inc.; File No. 192
3050’’ on your comment. Your
comment—including your name and
your state—will be placed on the public
record of this proceeding, including, to
the extent practicable, on the https://
www.regulations.gov website.
Due to the public health emergency in
response to the COVID–19 outbreak and
the agency’s heightened security
screening, postal mail addressed to the
Commission will be subject to delay. We
strongly encourage you to submit your
comments online through the https://
www.regulations.gov website.
If you prefer to file your comment on
paper, write ‘‘Ortho-Clinical
Diagnostics, Inc.; File No. 192 3050’’ on
your comment and on the envelope, and
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]]>Agencies
[Federal Register Volume 85, Number 67 (Tuesday, April 7, 2020)]
[Notices]
[Pages 19479-19481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07269]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request
AGENCY: Federal Trade Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Paperwork Reduction Act of 1995
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comment on its proposal to extend for an additional
three years the Office of Management and Budget clearance for
information collection requirements in its Trade Regulation Rule on
Disclosure Requirements and Prohibitions Concerning Franchising
(``Franchise Rule'' or ``Rule''). That clearance expires on October 31,
2020.
DATES: Comments must be submitted by June 8, 2020.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Franchise Rule, PRA
Comment, FTC File No. P094400'' on your comment and file your comment
online at https://www.regulations.gov, by following the instructions on
the web-based form. If you prefer to file your comment on paper, mail
your comment to the following address: Federal Trade Commission, Office
of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex J), Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: Christine M. Todaro, Attorney,
Division of Marketing Practices, Bureau of Consumer Protection, Federal
Trade Commission, 600 Pennsylvania Avenue
[[Page 19480]]
NW, Room 8607, Washington, DC 20580, (202) 326-3711, [email protected].
SUPPLEMENTARY INFORMATION:
Title of Collection: Franchise Rule, 16 CFR part 436.
OMB Control Number: 3084-0107.
Type of Review: Extension without change of currently approved
collection.
Affected Public: Private Sector: Businesses and other for-profit
entities.
Estimated Annual Burden Hours: 16,750.
Estimated Annual Labor Costs: $3,603,125.
Estimated Annual Non-Labor Costs: $7,250,000.
Abstract: The Franchise Rule ensures that consumers who are
considering a franchise investment have access to the material
information they need to make an informed investment decision and
compare different franchise offerings. The Rule requires franchisors to
furnish prospective purchasers with a Franchise Disclosure Document
(``FDD'') that provides information relating to the franchisor, its
business, the nature of the proposed franchise, and any representations
by the franchisor about financial performance regarding actual or
potential sales, income, or profits made to a prospective franchise
purchaser. The Rule also requires that franchisors maintain records to
facilitate enforcement of the Rule.\1\ The franchisor must preserve
materially different copies of its FDD for 3 years, as well as
information that provides a reasonable basis for any financial
performance representation it elects to make.
---------------------------------------------------------------------------
\1\ The Rule was amended in 2007 to conform its disclosure
requirements with the disclosure format accepted by 15 states that
have franchise registration or disclosure laws. See 72 FR 15444
(Mar. 30, 2007). The amended Rule has significantly minimized any
compliance burden beyond what is required by state law.
---------------------------------------------------------------------------
Estimated Annual Hours Burden: 16,750.
Based on information from state regulatory authorities and relevant
trade journals, staff estimates that there are approximately 2,500
sellers of franchises covered by the Rule, with approximately 10% of
that total reflecting an equal amount of new and departing business
entrants.\2\ Staff estimates that the average annual disclosure burden
for established franchisors to update existing disclosure documents
will be three hours per seller for a total of 6,750 hours (2,250
franchisors x 3 hours). For new franchisors, staff estimates that
preparation of disclosure documents by new sellers of franchise
opportunities will require approximately 30 hours for a total of 7,500
hours (250 new franchisors x 30 hours).
---------------------------------------------------------------------------
\2\ This number appears to be consistent with the number of
business format franchise offerings registered in compliance with
state franchise laws, and listed in franchise directories.
---------------------------------------------------------------------------
Covered franchisors also may need to maintain an alternative
version of the FDD for use in non-registration states, which may differ
from FDDs used in registration states. Staff estimates that this
recordkeeping obligation would require approximately one hour per year.
This results in an additional burden of 2,500 hours (2,500 franchisors
x 1 hour). Under the Rule, a franchisor is also required to retain
copies of receipts of disclosure documents, as well as materially
different versions of its disclosure documents. Such recordkeeping
requirements, however, are consistent with, or less burdensome than,
those imposed by the states that have franchise registration and
disclosure laws. Accordingly, staff believes that incremental
recordkeeping burden, if any, would be de minimis.
Estimated Annual Labor Costs: $3,603,125.
Labor costs are derived by applying estimated hourly cost figures
to the burden hours described above. FTC staff anticipates that an
attorney will prepare required disclosure documents at an estimated
hourly attorney rate of $250.\3\ For established franchisors, estimates
the following annual labor costs: $750 per established franchisor (3
hours x $250) for a total annual cost burden of $1,687,500 ($750 x
2,250 established franchisors). For new franchisors, this yields an
annual cost of $7,500 per new franchisor (30 hours x $250) for a total
annual cost burden of $1,875,000 for new franchisors ($7,500 x 250 new
franchisors).
---------------------------------------------------------------------------
\3\ Commission staff believes this is a reasonable estimate for
mean hourly attorney rates for franchisor consultation on compliance
with the Rule's disclosure and recordkeeping requirements.
---------------------------------------------------------------------------
The FTC additionally anticipates that recordkeeping under the Rule
will be performed by clerical staff at approximately $16.25 per
hour.\4\ Thus, 2,500 hours of recordkeeping burden per year for all
covered franchisors will amount to a total annual labor cost of
$40,625.
---------------------------------------------------------------------------
\4\ Based on mean hourly wages for file clerks found in Table 1.
``National employment and wage data from the Occupational Employment
Statistics survey by occupation, May 2018,'' at https://www.bls.gov/news.release/ocwage.t01.htm.
---------------------------------------------------------------------------
Estimated Annual Non-Labor Costs: $7,250,000.
In developing cost estimates for this Rule, FTC staff consulted
with practitioners who prepare disclosure documents for a cross-section
of franchise systems. The FTC believes that its cost estimates remain
representative of the costs incurred by franchisors generally.
FTC staff estimates that the non-labor burden incurred by
franchisors differs based on the length of the disclosure document, the
number produced, and the method of distribution employed by
franchisors. Staff estimates that the estimated 2,500 sellers of
franchise opportunities distribute approximately 100 disclosure
documents each annually for a total of 250,000 disclosure documents.
Staff estimates that 80% of these disclosure documents are distributed
in hard copy format at a cost of $35 each for printing and mailing
costs. This results in a total estimated $7,000,000 in non-labor costs
printing and mailing disclosure documents (200,000 x $35). Staff
estimates that the remaining 20% of disclosure documents (50,000) are
distributed electronically, at a cost of $5 per electronic disclosure.
This yields a total non-labor cost burden associated with the
electronic distribution of disclosure documents of $250,000 (50,000 x
$5).
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 clearance for the information collection
requirements contained in the Franchise Rule, 16 CFR part 436 (OMB
Control No. 3084-0107).
Request for Comment
Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) Whether the proposed collection of information 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.
[[Page 19481]]
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before June 8, 2020.
Write ``Franchise Rule, PRA Comment, FTC File No. P094400'' on your
comment. Postal mail addressed to the Commission is subject to delay
due to heightened security screening. As a result, we encourage you to
submit your comments online. To make sure that the Commission considers
your online comment, you must file it through the https://www.regulations.gov website by following the instructions on the web-
based form provided. Your comment, including your name and your state--
will be placed on the public record of this proceeding, including the
https://www.regulations.gov website.
If you file your comment on paper, write ``Franchise Rule, PRA
Comment, FTC File No. P094400'' on your comment and on the envelope,
and mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610,
Washington, DC 20024. If possible, please submit your paper comment to
the Commission by courier or overnight service.
Because your comment will be placed on the public record, you are
solely responsible for making sure that your comment does not include
any sensitive or confidential information. In particular, your comment
should not include any sensitive personal information, such as your or
anyone else's Social Security number; date of birth; driver's license
number or other state identification number, or foreign country
equivalent; passport number; financial account number; or credit or
debit card number. You are also solely responsible for making sure that
your comment does not include any sensitive health information, such as
medical records or other individually identifiable health information.
In addition, your comment should not include any ``trade secret or any
commercial or financial information which . . . is privileged or
confidential''--as provided by Section 6(f) of the FTC Act, 15 U.S.C.
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)--including in
particular competitively sensitive information such as costs, sales
statistics, inventories, formulas, patterns, devices, manufacturing
processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted on https://www.regulations.gov--as legally required by FTC
Rule 4.9(b)--we cannot redact or remove your comment from https://www.regulations.gov, unless you submit a confidentiality request that
meets the requirements for such treatment under FTC Rule 4.9(c), and
the General Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before June 8, 2020.
For information on the Commission's privacy policy, including routine
uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2020-07269 Filed 4-6-20; 8:45 am]
BILLING CODE 6750-01-P
