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On September 4, the Federal Trade Commission (FTC) launched a public inquiry to better understand the scope, prevalence, and effects of employer noncompete agreements, as well as to gather information to inform possible future enforcement actions.
Get smarter: Noncompetes in franchise agreements typically address competition both during the term of the franchise agreement and following expiration or termination of the relationship. In April 2023, IFA submitted comments on a proposed rule urging the FTC to avoid extending the noncompete ban to franchise agreements, and in August 2024, IFA praised the U.S. District Court for the Northern District of Texas for ruling that the FTC exceeded its legal authority in issuing its sweeping ban on noncompete agreements.
Get involved: The latest 60 day-comment period will last until November 3, 2025. IFA members wishing to submit a comment can visit here, or contact IFA General Counsel Sarah Davies at sdavies@franchise.org to learn more.
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