The NASAA Franchise and Business Opportunity Project Group has released, for both internal and public comment, a series of proposed Model Exemptions relating to state franchise registration and disclosure laws. The proposal includes model language for states to use to promulgate exemptions from registration and disclosure provisions under current state franchise laws.
As discussed in the Notice of Request for Public and Internal Comment, the proposal adopts four types of franchise exemptions: (1) a fractional franchise exemption; (2) an experienced franchisor exemption; (3) a set of three sophisticated purchaser exemptions; and (4) a discretionary exemption. The Proposal contains some elements of existing exemptions adopted by several franchise registration states, although requirements have been updated to reflect current conditions in franchising and the U.S. economy.
The comment period began on July 1, 2011, and will remain open for 30 days. All comments should be submitted on or before August 1, 2011. Comments should be directed by e-mail or in writing to: Dale Cantone, Chair, NASAA Franchise and Business Opportunity Project Group; and Joseph Opron, Counsel, NASAA, at the addresses provided in the Notice.