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Read the authorised range

Check the permitted or required offerings, customer restrictions and the franchisor’s rights to change the range. A broad category such as facilities services can leave the actual tasks unclear.

Sources: Federal Trade Commission: Item 16: Restrictions on what may be sold

A cleaning offer may not include mechanical work

If an operator wants to add mechanical maintenance, first compare those tasks with the agreement’s service range and customer conditions. Then check the separate qualifications or government permissions for the actual work and location.

The brand’s approval does not supply those qualifications. A government qualification does not by itself expand the private agreement either. Keep revenue from an unresolved service identified as an assumption.

Sources: Federal Trade Commission: Item 16: Restrictions on what may be sold

Scope

  • This explains the selected federal disclosure item. State and territorial requirements and the terms of the particular offer remain separate.

Next step

Confirm the actual service and customer permissions before treating the added work as part of the operator’s offer.

Sources & review notes

Federal Franchise Rule

FTC overview · Compliance Guide · Guide PDF · Current regulation

The Compliance Guide is May 2008 explanatory guidance. The current regulation and later official updates control current requirements and dollar amounts; state and territorial rules are separate.

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

16 CFR §436.5(p): FDD Item 16

Federal Trade Commission

Passage, dates and research notes

primary · Item 16: Restrictions on what may be sold

Disclose any franchisor-imposed restrictions or conditions on the goods or services

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Current substantive item read in full from current eCFR. This guide explains selected management implications; it is not a substitute for all prescribed disclosure text.

16 CFR §436.6: FDD preparation and records

Federal Trade Commission

Passage, dates and research notes

primary · section-436.6

Respond fully to each disclosure Item.

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.

Detailed rule records (1)
FDD Item 16: Restrictions on what may be sold Source checked

Item 16 describes restrictions on goods or services, customer access, required offerings and rights to change the authorised range. A successful home-market bundle may not align with U.S. procurement or sector permissions. Do not assume a brand license authorizes regulated work.

When to check: Preparing, updating or comparing an FDD. Source review: 2026-11-12.

16 CFR §436.5(p): FDD Item 16
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