yourstate.us
16 CFR 437.8

§ 437.8 Franchise exemption.

United States · 16 CFR — Commercial Practices · Status: effective

Get this as JSONEmbed this
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
Permanent ID
ys:prov:64519@1
SHA-256
d326122a45ba7d1d96539168c44f620620d1d95ab1243156ddb40645b2506455

The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.

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.