Oregon Franchise Laws: Buying or Selling a Franchise

Oregon Franchise Registration Status: Non‐Registration
State Registration Fee: $0.00

If you are interested in buying a franchise in Oregon or converting your Oregon based business into a franchise (expanding your business throughout Oregon and surrounding States like Washington and California) then it is important to understand the "Franchise Process" and how Oregon law and the Federal Franchise Rule regulate franchising.

What is a Franchise?

Well under the Oregon Trade Regulation and Practices Act (ORS 650.005) a franchise is defined as including:

Any contract or agreement, whether oral or written, by which:

• A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor;
• The operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor of such plan or system; and
• The franchisee is required to give to the franchisor a valuable consideration for the right to transact business pursuant to the plan or system. Payment for trading stamps in itself is not consideration for the right to transact business pursuant to a plan or system.

Prior to offering or selling a franchise in the State of Oregon, a Franchisor must provide a Franchisee with a Franchise Disclosure Document ("FDD") that is registered with the Oregon Division of Finance and Corporate Securities. For Franchisors the FDD represents a critical regulatory obligation that must be properly prepared and registered with the advice of an experienced franchise lawyer. For franchisees the FDD represents an important disclosure document that should be reviewed with a franchise lawyer.

Learn More – Complimentary Books

• If You Would Like to Franchise Your Oregon Business – Order a complimentary copy of Charles N. Internicola’s book "How To Expand and Grow Your Business Through Franchising" and learn about the key steps to take to franchise your business and register your FDD in franchise registration states like Oregon.
• If You Would Like to Buy a Franchise – Order a complimentary copy of Charles N. Internicola’s Book "An Entrepreneurs Guide to Buying a Business" and learn about a step-by-step process for buying a franchise and key steps that can be taken to modify your franchise agreement.

Oregon Franchise Law Links and Resources

• Oregon Division of Finance Regulations
• ORS Chapter 650 – Oregon Revised Statutes for Franchises