CPSC - 16 CFR PART 436
DISCLOSURE REQUIREMENTS AND PROHIBITIONS CONCERNING FRANCHISING
| Organization: | CPSC |
| Publication Date: | 1 January 2017 |
| Status: | active |
| Page Count: | 31 |
scope:
Definitions.
Unless stated otherwise, the following definitions apply throughout part 436:
(a) Action includes complaints, cross claims, counterclaims, and third-party complaints in a judicial action or proceeding, and their equivalents in an administrative action or arbitration.
(b) Affiliate means an entity controlled by, controlling, or under common control with, another entity.
(c) Confidentiality clause means any contract, order, or settlement provision that directly or indirectly restricts a current or former franchisee from discussing his or her personal experience as a franchisee in the franchisor's system with any prospective franchisee. It does not include clauses that protect franchisor's trademarks or other proprietary information.
(d) Disclose, state, describe, and list each mean to present all material facts accurately, clearly, concisely, and legibly in plain English.
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