Tag: Franchises, Business Opportunities, and Investments

Discusses whether the sale of a pay telephone business opportunity meets the Rule's "continuing commercial relationship" requirement

Clarifies a previous opinion addressing when a future payment may satisfy the Rule's minimum payment requirement.

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...

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...

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...

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...

Discusses disclosure updating requirements, concluding that the Rule permits an additional update after the most recent quarterly update to disclose new litigation against a franchisor, but requires...

Apparent applicability of Rule to company providing locator services to business opportunity purchasers while also offering to sell vending machines.

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...

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...

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...

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...

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.