April 29, 1997 Secretary, Federal Trade Commission
Room 159,
Sixth Street and Pennsylvania Avenue, N.W.
Washington, D.C. 20580
RE: 16 CFR Part 436
Dear Secretary:
Pursuant to a bulletin issued regarding the above
mentioned FTC Rule change, as a Kentucky Fried Chicken
Franchisee and a member of the American Franchisee
Association I would like to offer the following comments.
I believe that it is in the best interest of free
enterprise and small business that the FTC prohibit
franchisors from:
-requiring outgoing franchisees to sign
confidentiality statements or gag orders;
-requiring current, renewing and outgoing
franchisees to sign general releases and waivers;
-requiring prospective and renewing franchisees to
agree to the venue and applicable law of the
franchisor's home state;
-requiring prospective and renewing franchisees to
give up their rights to a jury trial by mandating
arbitration;
-requiring franchisees to sign contracts that
contain integration clauses which specifically allow
franchisors to avoid the Franchise Rule or state law;
and
-requiring franchisees to sign post-term covenants
not-to-compete.
These provisions clearly violate the spirit of federal
and state due process constitutional law. I would also be
in favor of eliminating the FTC Franchise Rule. I support
the provision that would require the franchisor to
disclose earnings information prior to investing in a
Franchise.
Very truly yours,
Steve Bertoldi
10924 Mukilteo Speedway, Suite 276
Muklteo, WA 98275
(206) 349-5747
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