16 CFR 437.8
§ 437.8 Franchise exemption.
United States · 16 CFR — Commercial Practices · Status: effective
Cite this
- Citation
- 16 CFR 437.8, § 437.8 Franchise exemption, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/64519
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Full text
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; provided, however, 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.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.