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e-CFR data is current as of January 22, 2021

Title 16Chapter ISubchapter DPart 436 → Subpart G


Title 16: Commercial Practices
PART 436—DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING


Subpart G—Other Provisions


Contents
§436.10   Other laws and rules.
§436.11   Severability.
Appendix A to Part 436—Sample Item 10 Table—Summary of Financing Offered
Appendix B to Part 436—Sample Item 20(1) Table—Systemwide Outlet Summary
Appendix C to Part 436—Sample Item 20(2) Table—Transfers of Franchised Outlets
Appendix D to Part 436—Sample Item 20(3) Table—Status of Franchise Outlets
Appendix E to Part 436—Sample Item 20(4) Table—Status of Company-Owned Outlets
Appendix F to Part 436—Sample Item 20(5) Table—Projected New Franchised Outlets

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§436.10   Other laws and rules.

(a) The Commission does not approve or express any opinion on the legality of any matter a franchisor may be required to disclose by part 436. Further, franchisors may have additional obligations to impart material information to prospective franchisees outside of the disclosure document under Section 5 of the Federal Trade Commission Act. The Commission intends to enforce all applicable statutes and rules.

(b) The FTC does not intend to preempt the franchise practices laws of any state or local government, except to the extent of any inconsistency with part 436. A law is not inconsistent with part 436 if it affords prospective franchisees equal or greater protection, such as registration of disclosure documents or more extensive disclosures.

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§436.11   Severability.

If any provision of this part is stayed or held invalid, the remainder will stay in force.

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Appendix A to Part 436—Sample Item 10 Table—Summary of Financing Offered

SUMMARY OF FINANCING OFFERED

Item
Financed
Source of Financing Down Payment Amount
Financed
Term (Yrs) Interest Rate Monthly Payment Prepay Penalty Security Required Liability Upon
Default
Loss of Legal Right on Default
Initial Fee                              
Land/Constr                              
Leased Space                              
Equip. Lease                              
Equip.
    Purchase
                              
Opening
    Inventory
                              
Other
    Financing
                              

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Appendix B to Part 436—Sample Item 20(1) Table—Systemwide Outlet Summary

Systemwide Outlet Summary

Column 1
Outlet Type
Column 2
Year
Column 3
Outlets at the Start of the Year
Column 4
Outlets at the End of the Year
Column 5
Net Change
Franchised20048591,062 + 203
   20051,0621,296 + 234
   20061,2962,720 + 1,424
Company Owned2004125145 + 20
   200514576-69
   200676141 + 65
Total Outlets20049841,207 + 223
   20051,2071,372 + 165
   20061,3722,861 + 1,489

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Appendix C to Part 436—Sample Item 20(2) Table—Transfers of Franchised Outlets

Transfers of Franchised Outlets from Franchisees to New Owners (other than the Franchisor)

Column 1
State
Column 2
Year
Column 3
Number of Transfers
NC20041
   20050
   20062
SC20040
   20050
   20062
Total20041
   20050
   20064

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Appendix D to Part 436—Sample Item 20(3) Table—Status of Franchise Outlets

Status of Franchise Outlets

Column 1
State
Column 2
Year
Column 3
Outlets at Start of Year
Column 4
Outlets Opened
Column 5
Terminations
Column 6
Non-Renewals
Column 7
Reacquired by Franchisor
Column 8
Ceased Operations-Other Reasons
Column 9
Outlets at End of the Year
AL2004102100110
   2005115010015
   2006154101215
AZ2004205000025
   2005254100226
   2006264000030
Totals2004307100135
   2005369110241
   2006418101245

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Appendix E to Part 436—Sample Item 20(4) Table—Status of Company-Owned Outlets

Status of Company-Owned Outlets

Column 1
State
Column 2
Year
Column 3
Outlets at Start of Year
Column 4
Outlets Opened
Column 5
Outlets Reacquired From Franchisees
Column 6
Outlets Closed
Column 7
Outlets Sold to Franchisees
Column 8
Outlets at End of the Year
NY2004101002
   2005220103
   2006300300
OR2004401005
   2005500203
   2006300012
Totals2004502007
   2005720306
   2006600312

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Appendix F to Part 436—Sample Item 20(5) Table—Projected New Franchised Outlets

Projected New Franchised Outlets

Column 1
State
Column 2
Franchise Agreements Signed But Outlet Not Opened
Column 3
Projected New Franchised Outlets in the Next Fiscal Year
Column 4
Projected New Company-Owned Outlets in the Current Fiscal Year
CO231
NM042
Total273

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