Legal Question in Business Law in Minnesota

Franchise or Business Opportunity

My business has developed a program (professionally facilitated program, not program in the software sense of the word) that helps companies to determine optimum competitive direction and develop associated strategic plans. We have been exploring the possibility of licensing this program to CPA firms, for them to deliver and facilitate with their clients and other companies. We would charge them an licensing fee, plus an additional fee with every program engagement they do. In return we would provide them with training, program materials and marketing assistance. We have several firms that are currently interested, so we are anxious to get underway. Assuming we are successful with the firm we select in Minnesota, we plan to take this opportunity to firms in other states as well.

My question is - does this initiative qualify as a franchise, and subject to UFOC filing, etc., or is it simply a distributed product?

Asked on 7/05/01, 1:44 pm

1 Answer from Attorneys

Vincent W. King Vincent W. King, PA

Re: Franchise or Business Opportunity

Based on the facts presented, it sounds like the safest course would be to treat it as a franchise. However, there may be an opportunity to design the arrangement so it is not considered a franchise.

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Answered on 7/05/01, 8:58 pm

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