16 CFR 436.1 - Definitions
| Cite as | 16 CFR 436.1 |
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165 practice notes
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Part V
...between an ``action'' at law and a ``proceeding'' in equity.\71\ Clearly, both types of legal matters must be disclosed. \68\See 16 CFR 436.1(a)(4). \69\ This definition is also consistent with the Commission's interpretation of the term ``action,'' as discussed in the Interpretive Guides t......
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Separate Parts In This Issue
Part V
Federal Trade Commission,
...between an ``action'' at law and a ``proceeding'' in equity.\71\ Clearly, both types of legal matters must be disclosed. \68\See 16 CFR 436.1(a)(4). \69\ This definition is also consistent with the Commission's interpretation of the term ``action,'' as discussed in the Interpretive Guides t......
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Schwartzco Enters. LLC v. TMH Mgmt., LLC, No. 14–CV–1082 ADSGRB.
...[“Amended Compl.”], at ¶ 4.). The Plaintiffs also assert that the Defendants violated the federal franchise disclosure law, including 16 C.F.R. 436.1 et seq. (the “FTC Act”), and the NYFSA by failing to provide sufficient disclosures.The Plaintiffs point to the individual defendants, includ......
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Legacy Acad., Inc. v. Mamilove, LLC, No. A14A0718.
...based upon Legacy's violations of the FTC Rules, specifically the FTC's Disclosure Requirements and Prohibitions Concerning Franchising, 16 CFR §§ 436.1 – 436.5. Under the FTC Rules,a franchisor must provide to prospective franchisees a complete and accurate basic disclosure document contai......
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111 cases
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Legacy Acad., Inc. v. Mamilove, LLC, No. A14A0718.
...based upon Legacy's violations of the FTC Rules, specifically the FTC's Disclosure Requirements and Prohibitions Concerning Franchising, 16 CFR §§ 436.1 – 436.5. Under the FTC Rules,a franchisor must provide to prospective franchisees a complete and accurate basic disclosure document contai......
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Morgan v. Air Brook Limousine, Inc.
...including Air Brook, to provide a prospective franchisee, like Morgan, with a Rule disclosure statement (required by F.T.C. Rule 16 C.F.R. § 436.1) is a per se unconscionable commercial practice, deception, fraud, false pretense, false promise or misrepresentation in violation of § 2 of the......
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United Consumers Club, Inc. v. Bledsoe, No. 2:97 CV 276.
...Commission ("FTC") Rule 436 obligated UCC to disclose future royalties as a category of damages in its Franchise Offering Circular. See 16 C.F.R. § 436. Thus, the counterdefendants argue, UCC's failure to reference royalties explicitly precludes UCC from pursuing royalties as a form of dama......
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Int'l Franchise Ass'n, Inc. v. City of Seattle, Case No. C14–848 RAJ.
...The definition used by the City here is no different than many other federal and state laws which regulate franchises. See, e.g., 16 C.F.R. § 436.1(h) ( “Franchise means any continuing commercial relationship or arrangement ... in which the terms of the offer or contract specify ... that th......
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19 firm's commentaries
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Patel, et al. v. 7-Eleven, Inc., et al – While the Massachusetts’ Independent Contractor Statute May Apply to Franchise Relationships, the SJC’s Decision Actually offers Protection for Franchisors
...applies to the relationship between a franchisor and its franchisee, where the franchisor must also comply with the FTC Franchise Rule [16 C.F.R. § 436.1, et seq.].” Patel, 8 F.4th at 29. The Court of Appeals recognized the broader policy implications at stake, noting, in its certified ques......
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Patel, et al. v. 7-Eleven, Inc., et al – While the Massachusetts’ Independent Contractor Statute May Apply to Franchise Relationships, the SJC’s Decision Actually offers Protection for Franchisors
...applies to the relationship between a franchisor and its franchisee, where the franchisor must also comply with the FTC Franchise Rule [16 C.F.R. § 436.1, et seq.].” Patel, 8 F.4th at 29. The Court of Appeals recognized the broader policy implications at stake, noting, in its certified ques......
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Patel, et al. v. 7-Eleven, Inc., et al – While the Massachusetts’ Independent Contractor Statute May Apply to Franchise Relationships, the SJC’s Decision Actually offers Protection for Franchisors
...applies to the relationship between a franchisor and its franchisee, where the franchisor must also comply with the FTC Franchise Rule [16 C.F.R. § 436.1, et seq.].” Patel, 8 F.4th at 29. The Court of Appeals recognized the broader policy implications at stake, noting, in its certified ques......
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ABCs of Franchising: Who Is a Franchisor?
...Under the Franchise Rule, a “franchisor” is “any person who grants a franchise and participates in the franchise relationship.” 16 C.F.R. 436.1(k). For a party to be a franchisor, it must satisfy both elements: (1) grant a franchise and (2) participate in the franchise relationship. 72 Fed.......
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11 books & journal articles
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Franchise Encroachment
...or (iii) permittingthe franchisor to distribute competing products under trademarks different from that of thefranchise system).12816 C.F.R. § 436.1 (2009).129Disclosure Requirements, 72 Fed. Reg. 15444 (Mar. 30, 2007) (codified at 16 C.F.R. pts.436–37 (2009)).130As recognized in Cont’l TV, ......
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Sourcing Restrictions and Vendor Rebates
...claims in franchise cases). 58. Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures, 16 C.F.R. §§ 436.1 to .11. 59 . See Hillman, supra note 38, at 45-46; McDavid & Steuer, supra note 38, at 235-36. 60. See, e.g. , Fortner Enters. v. U.S. Steel ......
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Franchising and the Parol Evidence Rule
...about earnings”). These earnings claims are now known as “financial performancerepresentations” under the Amended FTC Rule. 16 C.F.R. § 436.1(e) (West 2013). Recog-nizing that hotel operations and some other franchised industries measure performance byvariables, such as occupancy rates, besi......
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What Is Termination?
...[or the franchisor] may renew or extend” versus “[t]he conditions under which the franchisee [or the franchisor] may terminate .” 16 C.F.R. 436.1(a) (15)(ii)-(v) (emphasis added). Likewise, the Rule then distinguishes between “[t]he obligations (including lease or sublease obligations) of t......
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27 provisions
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HB 110 – Creates appropriations for FY 2022-2023
...the franchisor's trademark, brand, or both. For purposes of this division, "franchisor" and "franchisee" have the same meanings as in 16 C.F.R. 436.1. (B)(1) "Employment" means service performed by an individual for remuneration under any contract of hire, written or oral, express or implie......
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HB 166 – Creates FY 2020-2021 operating budget
...the franchisor's trademark, brand, or both. For purposes of this division, "franchisor" and "franchisee" have the same meanings as in 16 C.F.R. 436.1. (3) "Employee" means any individual employed by an employer but does not (a) Any individual employed by the United States; (b) Any individua......
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LB 909 – AN ACT relating to banking and finance
...Statutes Cumulative Supplement, 2018, is amended to read:59-1722 (1) Any transaction involving the sale of a franchise as defined in 16 C.F.R. 436.1(h), as such regulation existed on January 1, 2020 in which the seller has complied with the Federal Trade Commission trade regulation rule tit......
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LB 707 – AN ACT relating to banking and finance
...Reissue Revised Statutes of Nebraska, is amended to read:59-1722 (1) Any transaction involving the sale of a franchise as defined in 16 C.F.R. 436.1(h), as such regulation existed on January 1, 2022 2021, shall be exempt from the Seller-Assisted Marketing Plan Act, except that such transact......
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