franchise - business opportunity laws

Laws regulating the sale of non-franchised “business opportunities.” States that have such business opportunity laws typically exempt franchise programs that have federally registered trade or service marks, but some nonetheless require franchisors to file some form of application to claim that exemption. Some common business opportunities include vending machines, worm farming, envelope stuffing, and in-home mail order enterprises. In 2007, when it issued amendments to the Franchise Rule, the FTC also proposed a separate Business Opportunity Sales Regulation.

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