The Federal Trade Commission has exempted from its Franchise Rule Rolls-Royce Corp.'s authorized maintenance centers for turboprop, turbofan, and industrial gas turbine engines and Paccar’s truck dealerships.
The FTC ruled that conditions most likely to lead to abuse were not present in the sale of Rolls’ maintenance centers or Paccar’s truck dealerships. In both cases, prospective franchisees are sophisticated, experienced entrepreneurs who are well informed and have more than adequate time to consider the dealership offer and perform due diligence before investing.
Under the Franchise Rule, designed to prevent high-pressure selling tactics, the franchise seller must provide each prospective franchisee with basic disclosure documents, terms and other relationship details.
