§ 437.8 Franchise exemption.
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
provided, however,The provisions of this Rule shall not apply to any business opportunity that constitutes a “franchise,” as defined in the Franchise Rule, 16 CFR part 436; that the provisions of this Rule shall apply to any such franchise if it is exempted from the provisions of part 436 because, either:
(a) Under § 436.8(a)(1), the total of the required payments or commitments to make a required payment, to the franchisor or an affiliate that are made any time from before to within six months after commencing operation of the franchisee's business is less than $500, or
(b) Under § 436.8(a)(7), there is no written document describing any material term or aspect of the relationship or arrangement.
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