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What is a Fractional Franchise?

The term "fractional franchise" relates to a federal exemption to certain franchise / FDD disclosure obligations. A fractional franchise and, therefore a potential FDD disclosure exemption, exists in circumstances where the franchise being offered and sold is sold to franchisees that are already experienced and operating a similar business and where the "fractional franchise" will represent a small portion of revenues.

Learn more about the requirements for qualifying as a fractional franchise.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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