New rules from the Food and Drug Administration take effect on May 7, 2018, requiring certain businesses selling food to disclose calorie counts on their menus. The FDA’s menu labeling rules were previously scheduled to take effect in May 2017, but a strong lobbying effort from the restaurant industry led to a delay in implementation. The new rules apply to restaurants and similar businesses with 20 or more locations operating under a common name and offering substantially similar menu items. If enacted, a recent bill, the Common Sense Nutrition Disclosure Act, could loosen some of the requirements of the FDA’s new rules. However, that legislation remains pending before the Senate. The FDA’s new rules and existing state laws governing menu labeling largely make both franchisors and franchisees responsible for compliance.
The Franchise Memorandum