To: Q. who wrote (1942 ) 6/12/1999 10:44:00 AM From: Potential Read Replies (2) | Respond to of 7056
John, When I read your previous post, about HITT running a franchise without obeying the franchise rule, I thought you might have had a valid point. One of the members of RB found and posted the Franchise code. It follows:ragingbull.com ********************************************************************** "Sec. 436.2 Definitions. As used in this part, the following definitions shall apply: (a) The term franchise means any continuing commercial relationship created by any arrangement or arrangements whereby: (1)(i)(A) a person (hereinafter ''franchisee'') offers, sells, or distributes to any person other than a ''franchisor'' (as hereinafter defined), goods, commodities, or services which are: ( 1) Identified by a trademark, service mark, trade name, advertising or other commercial symbol designating another person (hereinafter ''franchisor''); or (2) Indirectly or directly required or advised to meet the quality standards prescribed by another person (hereinafter ''franchisor'') where the franchisee operates under a name using the trademark, service mark, trade name, advertising or other commercial symbol designating the franchisor; and (B)(1) The franchisor exerts or has authority to exert a significant degree of control over the franchisee's method of operation, including but not limited to, the franchisee's business organization, promotional activities, management, marketing plan or business affairs; or (2) The franchisor gives significant assistance to the franchisee in the latter's method of operation, including, but not limited to, the franchisee's business organization, management, marketing plan, promotional activities, or business affairs; Provided, however, That assistance in the franchisee's promotional activities shall not, in the absence of assistance in other areas of the franchisee's method of operation, constitute significant assistance; or ..." ********************************************************************** We concluded that B2 is where the franchise definition falls apart for HITT. HITT provides promotional assistance through their 800 number, but does not provide other significant assistance to the person in other areas of operation. Therefore, they are not a franchise. Of course, that is all opinion. Potential