Tag: Franchises, Business Opportunities, and Investments

Displaying 21 - 40 of 70 results.

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Filtering by content type: Advisory Opinion

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.
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 such an update only if the franchisor makes earnings claims and the litigation is...
Apparent applicability of Rule to company providing locator services to business opportunity purchasers while also offering to sell vending machines.
Responds to requests for clarification of Advisory 99-6 addressing business consultants' disclosure obigations.
Discusses business consultants' obligation to furnish disclosure documents.
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...
Discusses the meaning of "commercial relationship
Discusses the application of the Franchise Rule to free-standing sandwhich shops.
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.

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