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Started Dec 09 2012, 21:19
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Dec 09 2012, 21:19
Franchising is a method of expanding and financing a business and delivering goods and services. This chapter discusses the drafting of franchise agreements. The chapter's research guide contains the relevant California and federal statutes and regulations, as well as the California Commissioner of Corporations releases.
The legal background section begins with a discussion of California and federal statutes governing franchising and franchise agreements, including California's Franchise Investment Law, California's Cartwright Act, the California Franchise Relations Act, the California Fair Dealership Law, the Sherman Antitrust Act, the Clayton Act, the Robinson-Patman Act, and Federal Trade Commission Rule 436. The section explains the statutes' various definitions of "franchise." The legal background then discusses franchise agreements and such considerations as the advantages and disadvantages of franchising; the importance of trademarks in franchising; equipping the franchise premises; buying restrictions imposed on franchisees, such as tying arrangements and required purchases from third parties; payments to the franchisor; and termination and nonrenewal of the franchise. This section also covers specific types of franchises, including motor vehicle franchises and gasoline distributor or dealer franchises. In addition, the legal background considers the tax considerations of a franchise. It provides information on the tax classifications of a transfer of a franchise as a license, a sale of a capital asset, or a sale of a noncapital asset; a franchisor's basis; the application of I.R.C. § 1253; contingent serial payments; investigation and negotiation costs; and estate tax issues, such as the use of retirement plans, a franchise security ownership plan ("ZSOP" or "ZEESOP"), succession planning, estate tax liability, and deferred payment of estate taxes.
ID#12637790
Nila R
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