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What the FTC alleged
The FTC’s 16 October 2024 Southern District of Florida complaint alleged that Qargo Coffee’s California offering used distributorship and affiliated-licence language while operating as a franchise. Paragraphs 26–35 address brand rights, fees, controls and support.
Those are allegations, not findings from a contested trial. The actual relationship, rather than the heading on the agreement, is the business issue.
What the reviewed settlement reports establish
The December 2024 FTC litigation report records entry of a stipulated order on 17 October 2024. The fiscal-2025 report to Congress lists Full Settlement. Those official reports support the historical settlement description even though the stale FTC index says Pending and links a proposed order.
The actual signed entered order was not reviewed, so final monetary, rescission and noncompete terms are not stated. A proposed document cannot supply the final terms, and these reports do not establish collection, current compliance or absence of other disputes.
The definition is still a separate analysis
The federal framework examines trademark association, significant operating control or assistance and required payment/commitment, with exemptions and independent state requirements separate. One operating rule is not an automatic verdict.
The primary definition guide below explains that analysis. The May 2008 FTC guide helps distinguish trademark protection from wider operating directions; it is not current law or a current monetary-threshold sheet.
Scope
- Historical complaint/reports only; no signed final-remedy, present-conduct, money-recovery or complete current-docket conclusion.
Next step
Use the actual rights, payments and support—not the licence label—to identify the definition questions in your offer.
Sources & review notes
Federal Trade Commission / U.S. District Court filing
Passage, dates and research notes
primary · Document 1, October 16 2024; paragraphs 26–35 and CountsIII–IV
characterizing their offering within that state—and only that state—as a “distributorship.”
Read actual 23-page complaint, with key allegations in paragraphs 26–35 and timing/background allegations 46–49. Allegations remain allegations; no present conduct or final remedy terms inferred.
Federal Trade Commission via GovInfo
Passage, dates and research notes
official-guidance · AppendixA, printed page 34 / PDF page 41, Qargo row
Full Settlement
Read official Qargo row and visually inspected PDFpage 41 / printed 34; report covers FY 2025. Corroborates historical settlement outcome, not actual entered-order terms, payment/recovery or complete current docket.
Federal Trade Commission
Passage, dates and research notes
official-guidance · Qargo entry, printed page38 / PDF page41
Stipulated order for permanent injunction and monetary judgment entered 10/17/24.
Relevant official report entry read. Establishes reported order entry; does not replace reading the actual entered order or checking later docket developments.
Federal Trade Commission
Passage, dates and research notes
official-guidance · Timeline October16 2024
Case Status Pending
Index still says Pending and proposed order; later official litigation report records entry October17. Do not silently prefer old metadata.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.1
whatever it may be called
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Federal Trade Commission
Passage, dates and research notes
official-guidance · pp. 2–4, 16, 113–115
overall method of operation
Published May 2008 (day not asserted). Read relevant full-PDF sections. Dated guidance contains obsolete monetary thresholds and dated accounting discussion: current CFR controls; auditor must verify current SEC-permitted treatment.
Detailed rule records (1)
A continuing commercial relationship can meet the federal definition where it involves trademark association, significant control or assistance over the method of operation, and a required payment or commitment. Apply exemptions separately.
16 CFR §436.1: Federal franchise definitionKeep this reading in your learning library.
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