Exemptions for experienced franchisors and knowledgeable franchisees: law and policy

Article Abstract:

A uniform national registration and disclosure exemption should be established to aid experienced knowledgable franchisors/franchisees, especially since a number of states already exempt franchisors under certain conditions. Experienced franchisees are not usually at a disadvantage in dealing with franchisors, a principle acknowledged in state exemption laws covering sophisticated investors, franchise registration renewals, special franchisees and discretionary exemptions. A uniform statute would facilitate proper franchising policies and eliminate state and federal inconsistencies. The text of a proposed uniform exemption law is included.

Exemption (Law), Exemptions (Law)

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The applicability of state franchise laws to international transactions

Article Abstract:

The issue of the applicability of state franchise laws or the FTC Rule on disclosure to international transactions remains an unsettled question, although the best approach would be to limit US franchise law to domestic transactions. In particular, the FTC needs to clarify the applicability of the FTC Rule to pure or mixed outbound sales and transactions. The applicability of state franchise laws, including the so-called "Little FTC" Acts, similarly requires clarification. Issues regarding freedom of contract, extraterritoriality, and foreign law comity are also discussed.

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Application of U.S. franchise laws to international franchise sales

Article Abstract:

The applicability of US franchise laws on international franchise sales is a blurry area, but generally depend on the effect of the foreign sale on domestic businesses. For instance, the sale of a franchise to an oversee buyer for operation in a foreign country is not likely to be affected by federal franchise laws because the foreign operation will likely have no affect on US businesses. Different degrees of foreignness could lead to the application of some federal laws, however. Examples are dsicussed.

International business enterprises, Multinational corporations, Powers and duties, United States. Federal Trade Commission

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