Inapplicability of the Franchise Rule retroactively where the parties anticipated at the time of the purchase that the Rule would not apply because the only required payments were deferred until at least six months after the business opened. Concludes that the result does not change...
Apparent applicability of the Franchise Rule to a joint venture and license agreement. Discusses the ineffectiveness of transfers to affiliated companies of ownership of the mark and of franchisee waivers to avoid coverage or compliance obligations.
Apparent applicability of the Franchise Rule to mobile food and soft drink trucks identified by a common name. Discusses significant control and required payment elements.
Apparent applicability of the Franchise Rule to a commercial real estate affiliation program. Discusses in detail the likely availability of the fractional franchise exemption to the affiliation arrangement.
Apparent applicability of the Franchise Rule to a log cabin distributorship. Discusses the criteria for coverage of product franchises, including the required payment element, and the fractional franchise exemption.
Apparent inapplicablity of Franchise Rule to manufacturer's dealership program in which sole arguable payment to the manufacturer would occur, if at all, as a result of manufacturer's right to share in the proceeds of any sale of dealership assets.
Apparent inapplicability of Franchise Rule disclosure requirements to grant of additional franchises to existing franchisee where there are no material charges.
Apparent applicability of Franchise Rule to licensing to hospitals of a Travel Health Program, discussing whether the program's assistance is "significant" to the hospital's "entire method of operation."
Apparent applicability of Franchise Rule to distributorships for the sale of print advertising in regional or national publications.
Applicability of Rule's earnings claim dicosure requirements to general media claims made in news stories and elsewhere if copies are given to prospective franchesees by the franchisor.
Inappplicability of the Franchise Rule to possible co-branding relationship in which a licensor's system is to be sub-licensed by a third party franchisor to its franchesees, even though the license to the franchisor is covered by the Rule.
Discusses the circumstances under which, in providing earnings information to loan processing officials at lending institutions to assist prospective franchisees in obtaining loans, franchisors may not be obligated to provide earnings claim disclosures.
Discusses the conditions under which disclosures required by the Franchise Rule may be provided to prospective franchisees on a computer diskette.
Applicability of the fractional franchise exemption to a rehabilitative services franchise licensed to two types of medical providers.
Determines that the Rule does not prevent a franchisor from amending its disclosure document and franchise agreement after the tender of a signed contract and payment from a prospective franchisee, and that the question of whether a contract was formed by the tender is a matter of...
Apparent applicability of Rule to a sale of assets by owners of a laundry and dry cleaning plant and 13 satellite facilities, where purchasers would acquire three or more locations, have the option to use the seller's trademark and be required to comply with the seller's pricing...
Possible availability of the "fractional franchise" exemption to a franchisor of an "affiliation" franchise covered by the Rule and otherwise subject to its disclosure requirements.
Possible applicability of Rule to licensing arrangement in which the seller becomes a minority shareholder entitled to a percentage of the profits of a corporation formed by the purchaser.
Apparent applicability of Rule to licensing arrangement in which seller provides significant assistance and exercises significant control by restricting geographic territories in which licensees can solicit business.
Discusses the "required payment" coverage prerequisite, concluding that Rule coverage will not be triggered by the fact that a seller obtains collateral as security for a non-negotiable note due more than six months after a purchaser opens his or her business.