Lindal Cedar Homes, Inc

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IN THE MATTER OF LINDAL CEDAR HOMES, INC., ET AL.

Doket C-2774. Interlocutory Order, July 26, 1977 Denial of corporate respondent's petition for modification of order to cease and desist to provide a waiver of the requirement of furnishing prospective franchisees with extensive, specified information and a copy of the franchise agreement prior to the running of fifteen business days. ORDER DENYING PETITION FOR MODIFICATION OF ORDER Respondent, Lindal Cedar Homes, Inc., a firm engaged in the sale of franchises, has fied a petition to modify those portions of an order to cease and desist, issued on January 5, 1976, which requires it to furnish prospective franchisees extensive, specified information concerning its franchises and a copy of the franchise agreement " least fifteen days prior to the execution by the prospective franchisee of any franchise agreement or any other binding obligation or the payment by the prospective franchisee of any consideration in connection with the sale or proposed sale of a franchise." Respondent requests that the order provisions imposing these requirements be modified by adding thereto the words "unless, however, the prospective franchisee and its attorney execute a written waiver of the fifteen business days requirement." The Bureau of Consumer Protection has fied an answer opposing the requested modification. As grounds for its petition, respondent contends that there have been "a number of occasions when a prospective franchisee, represented by counsel, has requested a formal franchise agreement be executed prior to the running of fifteen business days" and that it believes that the prospective franchisee s rights will be fully protected since the prospective franchisee wil be represented by an attorney who must sign the waiver.

We agree with the Bureau of Consumer Protection that the petition should be denied. Respondent does not allege that changed conditions of fact or law require the proposed modification nor has it made a showing that public interest considerations require such a modification. There is no indication that the order has or wil cause undue hardship on respondent or prospective franchisees, and the Commission is not persuaded that legal representation is in all respects an adequate substitute for the required fifteen day waiting period.

Accordingly, It is ordered, That respondent's petition for modification of the order to cease and desist be, and it hereby is, denied. , ), I:JO FEDERAL TRADE COMMISSION DECISIONS Order 90 F.