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The buyer can live in a different state

In a fictional sale, a Singapore parent speaks with a New York resident about a Florida operation. A U.S. subsidiary will sell the rights and a broker introduces the parties. Florida outlet does not describe the whole transaction.

Identify the actual seller, the buyer’s residence, the operating location and where relevant communications originate or are received. The applicable state provisions determine which connections matter; this example makes no New York or Florida filing finding.

Sources: Federal Trade Commission: section-436.10

The sales activity happens before opening

Website advertising, broker introductions, meetings, territory discussions, disclosure, deposits and signing can raise different questions. Their content and any money or binding promise matter, not just a future opening date. This is not a universal prohibition on introductory calls.

Coverage, registration, notice, exemption, disclosure, advertising and ongoing relationship rules are separate questions. An unresearched answer is not no requirement, and an operating permit is not sales authority.

Sources: Federal Trade Commission: section-436.1 Federal Trade Commission: section-436.2 Federal Trade Commission: section-436.10

A federal process does not replace the state rules

The federal rule preserves state and local franchise-practices laws except to the extent of inconsistency. Equal or greater protection is not inconsistent. Completing federal disclosure therefore does not itself establish the state result.

Sources: Federal Trade Commission: section-436.10

Scope

  • This is a short explanation of relevant facts, not a determination of any state’s reach or exemption.

Next step

Check the sale’s actual parties, places and early communications before planning only around the outlet’s state.

Sources & review notes

The source records distinguish access dates from substantive review dates. Updating an explanation does not itself recheck the law.

16 CFR §436.10: Federal and state relationship

Federal Trade Commission

Passage, dates and research notes

primary · section-436.10

equal or greater protection

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.

16 CFR §436.1: Federal franchise definition

Federal Trade Commission

Passage, dates and research notes

primary · section-436.1

whatever it may be called

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.

16 CFR §436.2: Federal disclosure timing

Federal Trade Commission

Passage, dates and research notes

primary · section-436.2

at least 14 calendar-days

Accessed: 2026-11-12T20:51:48.875978+00:00 · Meaning reviewed: 2026-11-12 · Next review target: 2026-12-12

Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.

Detailed rule records (1)
Federal disclosure does not replace independent state analysis Source checked

The FTC rule preserves state and local franchise-practices laws except to the extent of inconsistency; equal or greater protection is not inconsistent. Research each relevant state dimension independently.

When to check: Planning offers, advertising, a sale or an operating location. Source review: 2026-11-12.

16 CFR §436.10: Federal and state relationship
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