Advisory Opinions

FTC staff issue advisory opinions to help clarify FTC rules and decisions, often in response to requests from businesses and industry groups. To find a specific opinion, use the filters on this page.

Opinion 00-2

Discusses whether the required payment element is satisfied if the franchisee pays no initial up-front franchise fee, but leases the premises and equipment from the restaurant-franchisor, pays a "working capital" deposit, and must permit the withdrawal of funds from a shared franchisor-franchisee "subaccount" to pay for operating expenses.

Opinion 99-5

Discusses the fractional franchise exemption, in particular:  (1) whether the location of the fractional franchise may be disqualifying; (2)  whether the exemption is available to a partnership; and (3) whether the exemption is available where the fractional franchisee operates the new line of business as a newly formed corporate subsidiary.